Glossary

Free Alongside Ship (... named port of shipment). In FAS, the seller/exporter/manufacturer clears the goods for export and then places them alongside the vessel at the "named port of shipment". (The seller's clearing the goods for export is new to Incoterms 2000.) The parties to the transaction, however, may stipulate in their contract of sale that the buyer will clear the goods for export.
The FAS term is used only for ocean or inland waterway transport.
The "named place" in FAS and all "F" terms is domestic to the seller.
The FAS term is commonly used in the sale of bulk commodity cargo such as oil, grains, and ore.
Normal payment terms for FAS transactions are generally cash in advance and open account, but letters of credit are also used.