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Free Carrier - FCA >>

  Free Carrier - FCA

Free Carrier, or FCA in abbreviation, is an Incoterm. It must always be used in conjunction with a "named place". The seller delivers the goods into the custody of the first carrier, and this is where risk passes from seller to buyer. The buyer pays for the transportation from the named place.

The place name can be anywhere from the supplier's shipping dock to the port of export. If there are any problems or costs of clearing customs in the country of export, the seller is responsible for correcting and paying for them.

It can be used for all modes of transportation including multimodal transport, such as in shipping containers where the ship's rail plays no relevant part in determining a shipping point.

FCA is also the term to use in place of FOB for airfreight transactions.

While it is many people's opinion that no single Incoterm is better than another, this particular Incoterm allows for a great deal of flexibility as it can be used for either airfreight or ocean freight shipments. In order for this Incoterm to be used correctly the shipper or consignee must state a named place, i.e. Free Carrier - freight forwarders facility Shanghai, China. Free Carrier can also technically be stated FCA - shipper’s facility. In this scenario the only difference between FCA and EXW would be that the shipper would be responsible for loading the cargo onto a truck at the dock.

  Obligations of Seller and Buyer in a FCA Import Export Trade

The Seller or Exporter: 

1). Warehouse storage at point of origin 

2). Warehouse labor at point of origin 

3). Export packing 

4). Loading at point of origin

The Buyer or Importer:

1). Inland freight  2). Port of receiving charges 

3). Forwarder’s fee  4). Loading on ocean carrier/airline  

5). Ocean/air freight charges 6). Charges in foreign airport/port  

7). Duties and taxes abroad  8). Delivery charges to final destination

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