FAS and DAP under Inco terms 2020

Difference between DAP and FAS

Delivered at Place to a named place (DAP) and  Free Along Side  at named place FAS are the two of eleven delivery rules for movement of goods under Incoterms 2020.

Let us discuss here the difference between both DAP and FAS delivery terms under Inco terms

First of all, FAS rule is meant for movement of goods on waterways, as it is known as Marine restricted mode of transport whereas DAP rule may be used for movement of goods by Air, Sea or Land.

Secondly, the named place under DAP is in buyer’s side whereas under FAS, the named place is in Seller’s country.

Another difference between DAP and FAS is; compared to FAS terms, higher risks and costs are involved for a seller under DAP terms, as he is responsible for main carriage and on carriage. 

Under FAS rules, the seller discharges his obligation on costs and risks under movement of goods when goods are placed near ship at seller’s side. But, under DAP rules; the seller is responsible for movement of goods till the named place mentioned at buyer’s side.

Under a contract of carriage DAP, since the control over main carriage is with the seller, the buyer depends up on the seller to get export movement data.  However, under FAS rules, the buyer pays ocean freight and he holds the control over main carriage in turn can obtain vessel movement data from shipping carriers or his agent easily.

Under FAS terms, since the buyer controls over the ocean freight, seller does not have responsibility to release Bill of Lading.  However, the buyer and seller mutually agree and buyer arranges to instruct carrier of goods or his agent to allow seller to release BL and in turn he sends to buyer through his bank, if original BL required by the buyer.

You may read about FAS and DAP separately in this website, you may click below to read:

FAS  Free Alongside Ship

DAP  Delivered at Place

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