FCA — Free Carrier

Mode of transport

Any mode

Definition

The seller delivers the goods, cleared for export, to the carrier or another person nominated by the buyer at the seller's premises or another named place. FCA is the recommended replacement for FOB in containerised trade.

Delivery point

Two variants: (a) at the seller's premises — delivery occurs when the goods are loaded on the buyer's collecting vehicle; (b) at any other place (terminal, forwarder's yard) — delivery occurs when the goods are placed at the disposal of the carrier on the seller's arriving vehicle, ready for unloading.

Risk transfer

At the moment of delivery to the nominated carrier at the named place — before the main carriage begins.

Seller costs

• Packing, marking and checking
• Pre-carriage to the named place
• Export clearance, duties, taxes and licences
• Loading, when delivery is at the seller's premises

Buyer costs

• Main carriage and freight
• Terminal handling at destination
• Insurance (if desired)
• Import clearance, duties and onward delivery

Insurance

No obligation on either party. The buyer normally insures from the delivery point.

Export formalities

Seller's responsibility and cost.

Import formalities

Buyer's responsibility and cost, including transit.

Documents

• Commercial invoice and packing list
• Export customs declaration
• Transport document — under FCA 2020 the parties may agree that the buyer instructs the carrier to issue an on-board bill of lading to the seller
• Certificate of origin, inspection or health certificates as agreed

Best use cases

The default rule for container shipments, air freight, road and rail exports, and for letter-of-credit transactions where the seller needs an on-board bill of lading.

Common mistakes

• Not stating the exact named place — the delivery point and the cost split both depend on it
• Using FOB instead of FCA for containers handed over at a terminal
• Forgetting to agree the on-board bill of lading option required by the L/C

Practical example

FCA Bandar Abbas Container Terminal, Incoterms® 2020 — the seller clears the pistachios for export and hands the container to the buyer's line at the terminal.