FCA, or Free Carrier, is an international trade term defined by the International Chamber of Commerce (ICC) in the Incoterms rules. FCA is more flexible than EXW and offers a bit more responsibility and risk to the seller, while still providing some advantages to the buyer.
Delivery Point
In an FCA transaction, the seller is responsible for delivering the goods, cleared for export, to a named place (e.g., the seller's premises, a terminal, or another specified location). The named place can be at the seller's location or elsewhere.
Seller's Responsibilities
Under FCA, the seller is responsible for:
- Packaging and preparing the goods for export.
- Delivering the goods to the named place, either at their own premises or another agreed-upon location. If the named place is the seller's premises, the seller must load the goods onto the buyer's transportation vehicle.
- Providing the buyer with any necessary documents, like invoices, export licenses, or other documentation.
Buyer's Responsibilities
- Arranging and paying for transportation from the named place of delivery to the final destination.
- Handling import customs formalities, duties, taxes, and clearances.
- Any additional costs or risks incurred after the goods have been delivered to the named place.
Transfer of Risk
Risk is transferred from the seller to the buyer at the named place of delivery. Once the goods are delivered and ready for unloading or further transportation, the buyer bears the responsibility for any damage, loss, or theft.
FCA is a more versatile Incoterm compared to EXW because it allows the seller to choose a location where they will hand over the goods to the buyer or the buyer's carrier. This flexibility can make FCA a preferred choice when the seller is better equipped to handle export formalities or when the buyer wants a bit more control over the transportation process.
Contributors
XA Editors