The scenario describes the Free Alongside Ship (FAS) Incoterm. Under FAS, the seller's obligation is fulfilled when the goods are placed alongside the vessel nominated by the buyer at the named port of shipment (e.g., on a quay or in a barge). The key element is the transfer of risk and cost from the seller to the buyer at the moment the goods are alongside the ship, before they are loaded. The buyer is then responsible for all subsequent costs, including loading, main carriage, and import clearance.

A. DAT – Delivered At Terminal: This term (replaced by DPU in Incoterms 2020) requires the seller to deliver and unload the goods at a named terminal at the destination.

B. DAP – Delivered At Place: The seller is responsible for delivery to a named destination, where the goods are ready for unloading; risk transfers at this destination point.

C. DDP – Delivery Duty Paid: This places maximum obligation on the seller, who is responsible for delivering the goods to the destination, cleared for import and with all duties paid.

1. CIPS L4M8 Procurement and Supply in Practice Study Guide. (2018). Profex Publishing Limited. Chapter 5: Sourcing

Section 5.5 International Sourcing

pp. 158-159. The guide defines FAS as: "The seller delivers when the goods are placed alongside the vessel... at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are alongside the ship."

2. International Chamber of Commerce (ICC). (2019). Incoterms® 2020: ICC rules for the use of domestic and international trade terms. ICC Publication No. 723E. Rule A2/B2 for FAS explicitly states

"The seller delivers the goods... when the goods are placed alongside the vessel... at the named port of shipment... The risk of loss of or damage to the goods transfers from the seller to the buyer when the goods are alongside the ship."

3. David

P.

& Stewart

R. (2010). International Logistics: The Management of International Trade Operations. 3rd ed. Cengage Learning. Chapter 6: Terms of Trade

p. 184. The text clarifies that under FAS

"The exporter is responsible for clearing the goods for export and placing them alongside the ship... The importer is responsible for the cost of loading the goods onto the ship."