In delivery, FIS stands for Free into Store. It is an unofficial term used in logistics and shipping that signifies the seller is responsible for all costs and risks associated with delivering goods directly into the buyer's designated store or premises.
Understanding FIS Responsibilities
When a delivery is designated as FIS, it means the seller takes on a comprehensive set of responsibilities, covering every expense from the point of origin right up to the final delivery inside the buyer's specified location. This arrangement ensures that the buyer receives the goods without incurring any additional shipping, customs, or handling costs.
Key responsibilities and costs borne by the seller under an FIS agreement typically include:
- Cost of Goods: The fundamental price of the products being sold.
- Insurance: Coverage for the goods throughout their journey, protecting against loss or damage during transit.
- Freight Charges: This encompasses all transportation costs, often equivalent to terms like:
- Cost, Insurance, and Freight (CIF): Where the seller pays for the cost of goods, insurance, and freight to a named port of destination.
- Cost and Freight (C&F): Similar to CIF but without the seller's insurance obligation after the goods are loaded onto the vessel.
- Duty and Taxes: Payment of any import duties, customs fees, tariffs, and other applicable taxes levied in the destination country.
- Landing Costs: Charges incurred when the goods arrive at the port or airport, such as terminal handling charges, wharfage, and other local port or airport fees.
- Inland Transport Charges: All costs for transporting the goods from the port of entry (or origin) to the buyer's final specified store or warehouse, including road, rail, or other ground transportation.
- Final Delivery: Ensuring the goods are physically delivered and placed within the buyer's designated premises, ready for their use.
Why is FIS Used in Logistics?
While not part of the internationally recognized Incoterms (International Commercial Terms), FIS is frequently employed in certain business scenarios because it offers:
- Simplicity for Buyers: It provides a "one-price" solution, making it easy for buyers to budget and avoid unexpected charges. The buyer knows the total cost upfront, as all logistical burdens fall on the seller.
- Seamless Delivery: Sellers with robust logistics networks can offer a complete, hassle-free delivery service, managing all aspects from dispatch to arrival at the buyer's doorstep.
- Clear Accountability: The term clearly delineates responsibility, ensuring that the seller is accountable for the goods until they are safely inside the buyer's facility.
This approach is particularly beneficial for buyers who prefer minimal involvement in the complexities of international shipping, customs clearance, and multiple transportation legs, opting instead for a comprehensive, seller-managed delivery solution.
