Incoterm® FCA (Free Carrier): The flexible and secure option for your logistics
Incoterm FCA (Free Carrier) is one of the most versatile and recommended rules of Incoterms® 2020. Under this term, the seller delivers the goods to the carrier that you, as the buyer, have designated, at an agreed place.
It is the perfect option if you want to have more control over your logistics chain without assuming 100% of the responsibility from the first minute.
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How does FCA work? Two delivery points
Delivery at the seller's premises
Delivery point:
Delivery takes place at the seller's warehouse, factory, or premises.
Loading:
The seller is responsible for loading the goods onto the transport vehicle contracted by the buyer.
Risk transfer:
At the moment the goods are loaded, the risk passes from the seller to the buyer.
Delivery at another agreed point (for example, a Terminal)
Delivery point:
Delivery takes place at an external location to the seller's premises (e.g., a port, airport, truck terminal).
Loading:
The seller is responsible for transport to that point, but is not obliged to unload the goods from the transport vehicle.
Risk transfer:
At the moment the vehicle arrives at the agreed point, the risk passes from the seller to the buyer.
Responsibilities under Incoterm FCA
Seller's responsibility
- Properly package and pack the goods.
- Deliver the goods at the agreed place and date.
- Manage and pay for export customs clearance and its costs.
- If delivery is at their premises, load the goods onto the vehicle.
Your responsibility as buyer
- Contract and pay for the main carriage from the delivery point to your final destination.
- Assume the risk of the goods from the moment of delivery.
- Pay for the costs of main carriage, import customs, insurance, and transport at destination.
When is it advisable to use FCA?
You are the buyer and want to control the main carriage
It allows you to choose your own carrier and negotiate better freight rates.
You send your cargo in a full container (FCL)
FCA is one of the most widely used Incoterms for FCL cargo, as it gives you control over logistics from origin.
You seek a balance of responsibilities
You avoid the complexity of EXW for the buyer (loading at origin and export customs clearance are the seller's responsibility), but you maintain control over the main carriage costs.
Important changes in Incoterms 2020 (FCA and the B/L)
Frequently Asked Questions
01.Who pays for the export?
Under FCA, export clearance is at the seller's expense.
02.Where is risk transferred?
At the named place, when the seller hands the goods to the carrier arranged by the buyer: at the seller's premises, once loaded; anywhere else, when they arrive ready for unloading.
03.Use of FCA?
FCA places transport and insurance costs on the buyer. Ideal for the seller.
Other Incoterms
EXWEx Works
The least responsibility for the seller. The goods are delivered at their warehouse or factory. The buyer assumes all costs and risks from that point.
CIPCarriage and Insurance Paid To
The seller pays for transport and insurance to the agreed destination.
DPUDelivered at Place Unloaded
The seller assumes all costs and risks until the goods are delivered and unloaded at the agreed destination (e.g., a terminal or warehouse).
DAPDelivered At Place
The seller delivers when the goods are made available at the agreed place.
FASFree Alongside Ship
The seller delivers the goods to the carrier designated by the buyer.
CIFCost, Insurance and Freight
The seller pays the cost, insurance and freight to the destination port.
