CIF, FOB, and FAS are international trade terms used in shipping and international

transactions. They define the responsibilities, costs, and risks associated with the
delivery of goods from the seller to the buyer. Here are the key differences between
CIF, FOB, and FAS:

1. CIF (Cost, Insurance, and Freight):

 In CIF, the seller is responsible for the cost of the goods, insurance, and freight
to bring the goods to the named port of destination.
 The seller arranges and pays for transportation and insurance up to the port
of destination.
 Once the goods are loaded onto the ship, the risk transfers from the seller to
the buyer.
 The buyer is responsible for any further transportation costs and risks from the
port of destination to the final destination.
2. FOB (Free On Board):
 In FOB, the seller is responsible for delivering the goods to the named port of
shipment and loading them onto the vessel.
 The seller covers the costs and risks of the goods until they are loaded onto
the ship.
 Once the goods are on board the vessel, the risk transfers from the seller to
the buyer.
 The buyer is responsible for the freight and insurance costs from the port of
shipment to the final destination.
3. FAS (Free Alongside Ship):
 FAS applies to goods delivered alongside the vessel at the named port of
shipment.
 The seller's responsibility ends when the goods are placed alongside the ship,
and the buyer assumes all risks and costs from that point forward.
 The buyer is responsible for loading the goods onto the vessel and for
transportation and insurance from the port of shipment to the final
destination.

In summary, the key difference between these trade terms lies in the point of transfer
of risk and responsibility. CIF places more responsibility on the seller, while FOB and
FAS place more responsibility on the buyer. It is essential for both the buyer and the
seller to clearly agree upon and specify the chosen Incoterm in the sales contract to
avoid misunderstandings and potential disputes during international transactions.
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