FAS vs DDP – who pays for what?

FAS is Free Alongside Ship and DDP is Delivered Duty Paid. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.

Key differences

Under DDP, the seller also covers loading for main carriage, the main freight, import clearance, and import duty and VAT. Under FAS, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer and in the mode of transport. FAS applies only to sea and inland waterway transport.

Loading for main carriage
FASBuyerDDPSeller
Main carriage (freight)
FASBuyerDDPSeller
Import clearance
FASBuyerDDPSeller
Import duty and VAT
FASBuyerDDPSeller
Risk passes
FASAlongside the ship at the port of loadingDDPAt the place of destination, before unloading
Mode of transport
FASSea onlyDDPAny

Full cost breakdown

CostFASDDP
Export clearanceSellerSeller
Transport to the port or terminalSellerSeller
Loading for main carriageBuyerSeller
Main carriage (freight)BuyerSeller
InsuranceNo obligationNo obligation
Unloading at destinationBuyerBuyer
Import clearanceBuyerSeller
Import duty and VATBuyerSeller
Risk passesAt the port of loading, when the goods are placed alongside the ship (e.g. on the quay).At the place of destination, after import clearance, when the goods are ready for unloading.
Mode of transportSea and inland waterway transport onlyAny mode of transport (sea, rail, air, road)

Notes

  • Unloading at destination: if unloading costs are included in the contract of carriage concluded by the seller, the seller pays them and cannot charge them to the buyer afterwards.

What to watch for when importing from China

FAS Free Alongside Ship

FAS is hardly ever used for containers, because a container is handed over at the terminal several days before loading. It makes sense for bulk and oversized cargo – for containers, FCA is the better choice.

DDP Delivered Duty Paid

The supplier has to act as the importer in Poland: declare the goods for customs clearance and pay duty and VAT. A Chinese supplier is rarely able to do this on its own, so it uses intermediaries. Goods shipped under DDP sometimes do not go through proper import clearance – and it is then the consignee who has a problem with goods that were not legally released for free circulation. With a new supplier, DAP is the safer choice.

More about DDP →

When to use FAS and when to use DDP?

  • FAS – for bulk and oversized cargo in sea freight, when the buyer arranges loading on board.
  • DDP – when the supplier is reliable and can legally clear the goods in Poland as the importer, and you want the goods delivered with duty and VAT paid.

Buying on FAS terms? You choose the forwarder

We organise transport from China – by rail, sea or air – together with customs clearance in Poland and cargo insurance. Send us your cargo details and we will prepare a quote tailored to your shipment.

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FAQ

What is the main difference between FAS and DDP?

Under DDP, the seller also covers loading for main carriage, the main freight, import clearance, and import duty and VAT. Under FAS, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer and in the mode of transport. FAS applies only to sea and inland waterway transport.

Where does risk pass to the buyer under FAS?

At the port of loading, when the goods are placed alongside the ship (e.g. on the quay).

Where does risk pass to the buyer under DDP?

At the place of destination, after import clearance, when the goods are ready for unloading.

Can FAS and DDP be used for rail freight from China?

Only DDP. DDP works with any mode of transport, while FAS applies only to sea and inland waterway transport. That is why FAS is not used for rail freight from China.

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Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is an independent, simplified summary of how costs and risks are divided – it is not affiliated with or approved by the ICC. When drafting contracts, use the official text of the Incoterms® 2020 rules published by the ICC.