Give at leaset 5 differences between the INCOTERMS; of CFR and FAS in import export?
(Solved Homework): Give at leaset 5 differences between the INCOTERMS; of CFR and FAS in import export?…
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Answer
| FAS | CFR |
| The seller delivers when the goods are placed alongside the buyer’s vessel at the named port of shipment | The seller pays for the carriage of the goods up to the named port of destination |
| This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. | Risk transfers to buyer when the goods have been loaded on board the ship in the country of Export |
| The FAS term requires the seller to clear the goods for export, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale | The Shipper is responsible for origin costs including export clearance and freight costs for carriage to named port. |
| This term should be used only for non-containerized seafreight and inland waterway transport. | CFR should only be used for non-containerized seafreight and inland waterway transport |
| This covers only part of what is covered in CFR | The shipper is not responsible for delivery to the final destination from the port (generally the buyer’s facilities), or for buying insurance |
| Any damage in transit is not Shipper’s risk | Any damage in transit till the export is shipper’s risk |
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