Question

Which INCOTERM it is-buyer is responsible for insurance once goods are brought alongside the vessel or on the quay until final delivery.

A) CPT
B) FAS
C) CFR
D) DDP.

Answer 1

FAS (Free Alongside Ship) is the INCOTERM where the buyer is responsible for insuring the goods once they are placed alongside the vessel and until final delivery. T

Step-by-step explanation:

The INCOTERM where the buyer is responsible for insurance once goods are brought alongside the vessel or on the quay until final delivery is FAS (Free Alongside Ship). Under this term, the seller delivers when the goods are placed alongside the vessel nominated by the buyer at the named port of shipment. The risk of loss or damage to the goods passes from seller to buyer when the goods are alongside the ship, and the buyer has to bear all costs. The buyer is also responsible for clearing the goods for export, unless otherwise agreed. It should be noted that FAS requires the buyer to arrange for the insurance cover against the buyer’s risk of loss or damage during carriage; unlike CIF (Cost Insurance and Freight) or CIP (Carriage and Insurance Paid to), where the seller is obligated to obtain insurance for the goods while in transit.