FAS in Export Import trade, Who arrange Insurance?
The term FAS reads as Free Along Side at a named location. In international trade, under FAS terms, the exporter places the goods near the place where ship or water carrier vehicle berths for main carriage. The exporter carries the risks and costs from his premises to the location where the ship berths for further movement.
Answer to the question about the party involved to undertake insurance under FAS terms is that both importer or exporter is not responsible. Inco terms does not state anything about the parties involved in undertaking the responsibility of insurance under FAS.
So, under FAS TERMS OF DELIVERY OF GOODS, either exporter or importer may arrange insurance as per their contract of carriage under Sale contract mutually agreed.
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