FAS vs FOB – who pays for what?
FAS is Free Alongside Ship and FOB is Free On Board. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.
Key differences
Under FOB, the seller also covers loading for main carriage. Under FAS, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer.
- Loading for main carriage
- FASBuyerFOBSeller
- Risk passes
- FASAlongside the ship at the port of loadingFOBOn board the vessel at the port of loading
Full cost breakdown
| Cost | FAS | FOB |
|---|---|---|
| Export clearance | Seller | Seller |
| Transport to the port or terminal | Seller | Seller |
| Loading for main carriage | Buyer | Seller |
| Main carriage (freight) | Buyer | Buyer |
| Insurance | No obligation | No obligation |
| Unloading at destination | Buyer | Buyer |
| Import clearance | Buyer | Buyer |
| Import duty and VAT | Buyer | Buyer |
| Risk passes | At the port of loading, when the goods are placed alongside the ship (e.g. on the quay). | At the port of loading, when the goods are on board the vessel. |
| Mode of transport | Sea and inland waterway transport only | Sea and inland waterway transport only |
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.
FOB Free On Board
A common mistake: FOB for rail or air freight. FOB applies only to sea and inland waterway transport. For rail freight from China, the right rule is FCA with the name of the terminal (e.g. “FCA Xi’an, rail terminal”), and for air freight, FCA with the name of the airport. Under FOB, the supplier pays for export clearance and the charges at the port of loading – check that they are not added to the invoice separately.
More about FOB →When to use FAS and when to use FOB?
- FAS – for bulk and oversized cargo in sea freight, when the buyer arranges loading on board.
- FOB – for sea freight, when the supplier delivers the goods to a port in China and handles export clearance, while your freight forwarder arranges the freight to Europe.
Buying on FAS or FOB 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.
Request a quoteFAQ
What is the main difference between FAS and FOB?
Under FOB, the seller also covers loading for main carriage. Under FAS, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer.
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 FOB?
At the port of loading, when the goods are on board the vessel.
Can FAS and FOB be used for rail freight from China?
No. FAS and FOB apply only to sea and inland waterway transport. For rail or air freight from China, the rules for any mode of transport are used instead – e.g. FCA, CPT or CIP.
Compare other pairs
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.