FAS – Free Alongside Ship

“Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.

A The Seller Must B The Buyer Must
A1 Provision of Goods in Conformity with the Contract

The seller must provide the goods and the commercial invoice, or its equivalent message, in conformity with the contract of sale and an other evidence of conformity which may be required by the contract.

B1 Payment of the Price

The buyer must pay the price as provided in the contract of sale.

A2 Licenses, Authorizations and Formalities

The seller must obtain at its own risk and expense any export licence or other official authorisation and carry out, where applicable, all customs formalities necessary for the export of the goods.

B2 Licenses, Authorizations and Formalities

The buyer must obtain at its own risk and expense any import licence or other official authorisation and carry out, where applicable, all customs formalities for the import of the goods and for their transit through any country.

A3 Contract of Carriage and Insurance
(a) Contract of carriage

No obligation.

(b) Contract of insurance

No obligation.

B3 Contract of Carriage and Insurance
(a) Contract of carriage

The buyer must contract at its own expense for the carriage of the goods from the named port of shipment.

(b) Contract of insurance

No obligation.

A4 Delivery

The seller must place the goods alongside the vessel nominated by the buyer at the loading place named by the buyer at the named port of shipment on the date or within the agreed period and in the manner customary at the port.

B4 Taking Delivery

The buyer must take delivery f the goods when they have been delivered in accordance with A4.

A5 Transfer of Risks

The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A4.

B5 Transfer of Risks

The buyer must bear all risk of loss of or damage to the goods
From the time they have been delivered in accordance with A4; and
From the agreed date or the expiration date of the agreed period for delivery which arise because it fails to give notice in accordance with B7, or because the vessel nominated by it fails to arrive on time, or is unable to take the goods, or closes for cargo earlier than the time notified in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.

A6 Division of Costs

The seller must, subject to the provisions of B5, pay
All costs relating to the goods until such time as they have been delivered in accordance with A4; and
Where applicable, the costs of customs formalities as well as all duties, taxes, and other charges payable upon export.

B6 Division of Costs

The buyer must pay:
All costs relating to the goods from the time they have been delivered in accordance with A4, and
Any additional costs incurred, either because the vessel nominated by it has failed to arrive on time, or is unable to take the goods, or closes for cargo earlier than the time notified in accordance with B7, or because the buyer has failed to give appropriate notice in accordance with B7 provided, however, that the goods have been duly appropriated to the contract that is to say, clearly set aside or otherwise identified as the contract goods; and
Where applicable, all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and for their transit through any country.

A7 Notice to the Buyer

The seller must give the buyer sufficient notice that the goods have been delivered alongside the nominated vessel.

B7 Notice to the Seller

The buyer must give the seller sufficient notice of the vessel name, loading point and required delivery time.

A8 Proof of Delivery, Transport Document or Equivalent Electronic Message

The seller must provide the buyer at the seller’s expense with the usual proof of delivery of the goods in accordance wiht A4.
Unless the document referred to in the preceding paragraph is the transport document, the seller must render the buyer at the buyer’s request, risk and expense, every assistance in obtaining a transport document (for example a negotiable bill of lading, an inland waterway document, a non-negotiable sea waybill).
When the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraphs may be replaced by an equivalent electronic data interchange (EDI) message.

B8 Proof of Delivery, Transport Document or Equivalent Electronic Message

The buyer must accept the proof of delivery in accordance with A8.

A9 Checking – Packaging – Marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
The seller must provide at its own expense packaging (unless it is usual for the particular trade to ship the goods of the contract description unpacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (for example modalities, destination) are made known to the seller before the contract of sale is concluded. Packaging is to be marked appropriately.

B9 Inspection of Goods

The buyer must pay the costs of any pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

A10 Other Obligations

The seller must render the buyer at the buyer’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic message (other than those mentioned in A8) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country.
The seller must provide the buyer, upon request, with the necessary information for procuring insurance.

B10 Other Obligations

The buyer must pay all costs and charges included in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering its assistance in accordance therewith.

FOB – Free On Board

“Free On Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.

A The Seller Must B The Buyer Must
A1 Provision of Goods in Conformity with the Contract

The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity, which may be required by the contract.

B1 Payment of the Price

The buyer must pay the price as provided in the contract of sale.

A2 Licenses, Authorizations and Formalities

The seller must obtain at its own risk and expense any export licence or other official authorisation and carry out, where applicable, all customs formalities necessary for the export of the goods.

B2 Licenses, Authorizations and Formalities

The buyer must obtain at its own risk and expense any import licence or other official authorisation and carry out, where applicable, all customs formalities for the import of the goods and, where necessary, for their transit through any country.

A3 Contract of Carriage and Insurance
(a) Contract of carriage

No obligation.

(b) Contract of insurance

No obligation.

B3 Contract of Carriage and Insurance
(a) Contract of carriage

The buyer must contract at its own expense for the carriage of the goods from the named port of shipment.

(b) Contract of insurance

No obligation.

A4 Delivery

The seller must deliver the goods on the date or within the agreed period at the named port of shipment and in the manner customary at the port on board the vessel nominated by the buyer.

B4 Taking Delivery

The buyer must take delivery of the goods when they have been delivered in accordance with A4.

A5 Transfer of Risks

The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have passed the ship’s rail at the named port of shipment.

B5 Transfer of Risks

The buyer must bear all risks of loss of or damage to the goods
From the time they have passed the ship’s rail at the named port of shipment and;
From the agreed date or the expiration date of the agreed period for delivery which arise because it fails to give notice in accordance with B7, or because the vessel nominated by him fails to arrive on time, or is unable to take the goods, or closes for cargo earlier than the time notified in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.

A6 Division of Costs

The seller must, subject to the provisions of B6, pay,br> All costs relating to the goods until such time as they have passed the ship’s rail at the named port of shipment; and
Where applicable, the costs of customs formalities necessary for export as well as all duties, taxes and other charges payable upon export.

B6 Division of Costs

The buyer must pay:
All costs relating to the goods from the time they have passed the ship’s rail at the named port of shipment; and
Any additional costs incurred, either because the vessel nominated by him fails to arrive on time, or is unable to take the goods, or closes for cargo earlier than the time notified in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods; and
Where applicable, all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and for their transit through any country.

A7 Notice to the Buyer

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4.

B7 Notice to the Seller

The buyer must give the seller sufficient notice of the vessel name, loading point and required delivery time.

A8 Proof of Delivery, Transport Document or Equivalent Electronic Message

The seller must provide the buyer at the seller’s expense with the usual proof of delivery in accordance with A4.
Unless the document referred to in the preceding paragraph is the transport document, the seller must render the buyer, at the latter’s request, risk and expense, every assistance in obtaining a transport document for the contract of carriage (for example, a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, or a multimodal transport document.
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange (EDI) message

B8 Proof of Delivery, Transport Document or Equivalent Electronic Message

The buyer must accept the proof of delivery in accordance with A8.

A9 Checking – Packaging – Marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
The seller must provide at its own expense packaging (unless it is usual for the particular trade to ship the goods of the contract description unpacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (for example modalities, destination) are made known tot the seller before the contract of sale is concluded. Packaging is to be marked appropriately.

B9 Inspection of Goods

The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export.

A10 Other Obligations

The seller must render the buyer at the buyer’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic message (other than those mentioned in A8) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country.
The seller must provide the buyer, upon request, with the necessary information for procuring insurance.

B10 Other Obligations

The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering its assistance in accordance therewith.

CFR – Cost and Freight

“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.

A The Seller Must B The Buyer Must
A1 Provision of Goods in Conformity with the Contract

The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity, which may be required by the contract.

B1 Payment of the Price

The buyer must pay the price as provided in the contract of sale.

A2 Licenses, Authorizations and Formalities

The seller must obtain at its own risk and expense any export licence or other official authorisation and carry out, where applicable, all customs formalities necessary for the export of the goods.

B2 Licenses, Authorizations and Formalities

The buyer must obtain at its own risk and expense any import licence or other official authorisation and carry out, where applicable, all customs formalities for the import of the goods and for their transit through any country.

A3 Contract of Carriage and Insurance
(a) Contract of carriage

The seller must contract on usual terms at its own expense for the carriage of the goods to the named port of destination by the usual route in a seagoing vessel (or inland waterway vessel as the case may be) of the type normally used for the transport of goods of the contract description.

(b) Contract of insurance

The seller must obtain at its own expense cargo insurance as agreed in the contract, such that the buyer, or any other person having an insurable interest in the goods, shall be entitled to claim directly form the insurer and provide the buyer with the insurance policy or other evidence of insurance cover.
The insurance shall be contracted with underwriters or an insurance company of good repute and, failing express agreement to the contrary, be in accordance with minimum cover of the Institute Cargo Clauses (Institute of London Underwriters) or any similar set of clauses. The duration of insurance cover shall be in accordance with B5 and B4. When required by the buyer, the seller shall provide at the buyer’s expense war, strikes, riots and civil commotion risk insurances if procurable. The minimum insurance shall cover the price provided in the contract plus ten per cent (i.e. 110%) and shall be provided in the currency of the contract.

B3 Contract of Carriage and Insurance
(a) Contract of carriage

No obligation.

(b) Contract of insurance

No obligation.

A4 Delivery

The seller must deliver the goods on board the vessel at the port of shipment on the date or within the agreed period.

B4 Taking Delivery

The buyer must accept delivery of the goods when they have been delivered in accordance with A4 and receive them from the carrier at the named port of destination.

A5 Transfer of Risks

The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have passed the ship’s rail at the port of shipment.

B5 Transfer of Risks

The buyer must bear all risk of loss of or damage to the goods from the time they have passed the ship’s ail at the port of shipment.
The buyer must, should he fail to give notice in accordance with B7, bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period fixed for shipment provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.

A6 Division of Costs

The seller must, subject to the provisions of B6, pay:
All costs relating to the goods until such time as they have been delivered in accordance with A4; and
The freight and all other costs resulting form A3 a), including the costs of loading the goods on board; and
The costs of insurance resulting form A3 b); and
Any charges for unloading at the agreed port of discharge which were for the seller’s account under the contract of carriage; and
Where applicable, the costs of customs formalities necessary for export as well as all duties, taxes and other charges payable upon export, an for their transit through any country if they were for the seller’s account under the contract of carriage.

B6 Division of Costs

The buyer must, subject to the provisions of A3, pay:
All costs relating to the goods from the time they have been delivered in accordance with A4; and
All costs and charges relating tot the goods whilst in transit until their arrival at the port of destination, unless such costs and charges wre for the seller’s account under the contract of carriage; and
Unloading costs including lighterage and wharfage charges, unless such costs and charges were for the seller’s account under the contract of carriage; and
All additional costs incurred if he fails to give notice in accordance with B7, for the goods from the agreed date or the expiry date of the period fixed for shipment, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods; and
Where applicable, all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and, where necessary, for their transit through any country unless included within the cost of the contract of carriage.

A7 Notice to the Buyer

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4 as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable it to take the goods.

B7 Notice to the Seller

The buyer must, whenever he is entitled to determine the time for shipping the goods and/or the port of destination, give the seller sufficient notice thereof.

A8 Proof of Delivery, Transport Document or Equivalent Electronic Message

The seller must, at its own expense, provide the buyer without delay with the usual transport document for the agreed port of destination.
This document (for example a negotiable bill of lading, a non-negotiable sea waybill or an inland waterway document) must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the good from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer (the negotiable bill of lading) or by notification to the carrier.

B8 Proof of Delivery, Transport Document or Equivalent Electronic Message

The buyer must accept the transport document in accordance with A8 it is in conformity with the contract.

A9 Checking – Packaging – Marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
The seller must provide at its own expense packaging (unless it is usual for the particular trade to ship the goods of the contract description unpacked) which is required for the transport of the goods arranged by it. Packaging is to be marked appropriately.

B9 Inspection of Goods

The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export.

A10 Other Obligations

The seller must render the buyer at the buyer’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of shipment an/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country.
The seller must provide the buyer, upon request, with the necessary information for procuring any additional insurance.

B10 Other Obligations

The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering its assistance in accordance therewith.
The buyer must provide the seller, upon request, with the necessary information for procuring insurance.

 

CIF – Cost, Insurance and Freight

“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.

A The Seller Must B The Buyer Must
A1 Provision of Goods in Conformity with the Contract

The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity, which may be required by the contract.

B1 Payment of the Price

The buyer must pay the price as provided in the contract of sale.

A2 Licenses, Authorizations and Formalities

The seller must obtain at its own risk and expense any export licence or other official authorisation and carry out, where applicable, all customs formalities necessary for the export of the goods.

B2 Licenses, Authorizations and Formalities

The buyer must obtain at its own risk and expense any import licence or other official authorisation and carry out, where applicable, all customs formalities for the import of the goods and for their transit through any country.

A3 Contract of Carriage and Insurance
(a) Contract of carriage

The seller must contract on usual terms at its own expense for the carriage of the goods to the named port of destination by the usual route in a seagoing vessel (or inland waterway vessel as the case may be) of the type normally used for the transport of goods of the contract description.

(b) Contract of insurance

The seller must obtain at its own expense cargo insurance as agreed in the contract, such that the buyer, or any other person having an insurable interest in the goods, shall be entitled to claim directly form the insurer and provide the buyer with the insurance policy or other evidence of insurance cover.
The insurance shall be contracted with underwriters or an insurance company of good repute and, failing express agreement to the contrary, be in accordance with minimum cover of the Institute Cargo Clauses (Institute of London Underwriters) or any similar set of clauses. The duration of insurance cover shall be in accordance with B5 and B4. When required by the buyer, the seller shall provide at the buyer’s expense war, strikes, riots and civil commotion risk insurances if procurable. The minimum insurance shall cover the price provided in the contract plus ten per cent (i.e. 110%) and shall be provided in the currency of the contract.

B3 Contract of Carriage and Insurance
(a) Contract of carriage

No obligation.

(b) Contract of insurance

No obligation.

A4 Delivery

The seller must deliver the goods on board the vessel at the port of shipment on the date or within the agreed period.

B4 Taking Delivery

The buyer must accept delivery of the goods when they have been delivered in accordance with A4 and receive them from the carrier at the named port of destination.

A5 Transfer of Risks

The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have passed the ship’s rail at the port of shipment.

B5 Transfer of Risks

The buyer must bear all risk of loss of or damage to the goods from the time they have passed the ship’s ail at the port of shipment.
The buyer must, should he fail to give notice in accordance with B7, bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period fixed for shipment provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.

A6 Division of Costs

The seller must, subject to the provisions of B6, pay:
All costs relating to the goods until such time as they have been delivered in accordance with A4; and
The freight and all other costs resulting form A3 a), including the costs of loading the goods on board; and
The costs of insurance resulting form A3 b); and
Any charges for unloading at the agreed port of discharge which were for the seller’s account under the contract of carriage; and
Where applicable, the costs of customs formalities necessary for export as well as all duties, taxes and other charges payable upon export, an for their transit through any country if they were for the seller’s account under the contract of carriage.

B6 Division of Costs

The buyer must, subject to the provisions of A3, pay:
All costs relating to the goods from the time they have been delivered in accordance with A4; and
All costs and charges relating tot the goods whilst in transit until their arrival at the port of destination, unless such costs and charges wre for the seller’s account under the contract of carriage; and
Unloading costs including lighterage and wharfage charges, unless such costs and charges were for the seller’s account under the contract of carriage; and
All additional costs incurred if he fails to give notice in accordance with B7, for the goods from the agreed date or the expiry date of the period fixed for shipment, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods; and
Where applicable, all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and, where necessary, for their transit through any country unless included within the cost of the contract of carriage.

A7 Notice to the Buyer

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4 as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable it to take the goods.

B7 Notice to the Seller

The buyer must, whenever he is entitled to determine the time for shipping the goods and/or the port of destination, give the seller sufficient notice thereof.

A8 Proof of Delivery, Transport Document or Equivalent Electronic Message

The seller must, at its own expense, provide the buyer without delay with the usual transport document for the agreed port of destination.
This document (for example a negotiable bill of lading, a non-negotiable sea waybill or an inland waterway document) must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to claim the good from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by the transfer of the document to a subsequent buyer (the negotiable bill of lading) or by notification to the carrier.

B8 Proof of Delivery, Transport Document or Equivalent Electronic Message

The buyer must accept the transport document in accordance with A8 it is in conformity with the contract.

A9 Checking – Packaging – Marking

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
The seller must provide at its own expense packaging (unless it is usual for the particular trade to ship the goods of the contract description unpacked) which is required for the transport of the goods arranged by it. Packaging is to be marked appropriately.

B9 Inspection of Goods

The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export.

A10 Other Obligations

The seller must render the buyer at the buyer’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of shipment an/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country.
The seller must provide the buyer, upon request, with the necessary information for procuring any additional insurance.

B10 Other Obligations

The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering its assistance in accordance therewith.
The buyer must provide the seller, upon request, with the necessary information for procuring insurance.