FAS - Free Alongside
Ship
"Cost,
Insurance and Freight" means that the seller
delivers when the goods pass the ship's rail in the
port of shipment.
The seller must pay the costs and freight necessary
to bring the goods to the named port of destination
BUT the risk of loss of or damage to the goods, as
well as any additional costs due to events occurring
after the time of delivery, are transferred from the
seller to the buyer. However, in CIF the seller also
has to procure marine insurance against the buyer's
risk of loss of or damage to the goods during the
carriage.
Consequently, the seller contracts for insurance and
pays the insurance premium. The buyer should note
that under the GIF term the seller is required to
obtain insurance only on minimum cover. Should the
buyer wish to have the protection of greater cover,
he would either need to agree as much expressly with
the seller or to make his own extra insurance
arrangements.
The CIF term requires the seller to clear the goods
for export. This term can be used only for sea and
inland waterway transport. If the parties do not
intend to deliver the goods across the ship's rail,
the CIP term should be used.
Incoterms - ALL List