FCA: Free Carrier
By Mohamed Omer, Chairman & Chief Executive Officer, Mooventory Global · Any mode
The seller clears goods for export and hands them to the buyer's carrier at a named place.
Where risk transfers
On delivery to the buyer's carrier at the named place (loaded if at seller's premises).
Seller pays
- Packaging
- Export clearance
- Delivery to the carrier
Buyer pays
- Main freight
- Insurance
- Import duties and clearance
- Delivery to destination
When to use FCA
Containerised and air shipments where the buyer controls freight.
Watch out for
Name the place precisely (e.g. 'FCA Jebel Ali, seller's warehouse'). The 2020 rules let the buyer ask its carrier to issue an on-board bill of lading for letters of credit.
FCA for Africa trade
The modern replacement for FOB on container cargo from Jebel Ali, Ningbo or Mersin.
Other Incoterms
Sources
International Chamber of Commerce (ICC), Incoterms® 2020 rules. Incoterms® 2020 remain the current ICC edition in force.