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FCA stands for Free Carrier, and it is one of the most commonly used Incoterms®.
This Incoterm means that the seller is responsible for delivering the goods to an agreed carrier at a specific location, which may be the seller's premises or another location chosen by the buyer.
Once the goods have been handed over to the carrier, the risk and responsibility are transferred to the buyer. FCA is often used for road and air transport, but can also be used for other modes of transport.
Responsibility with FCA
With FCA, it is the seller's responsibility to arrange transport and insurance until the goods are handed over to the carrier. After that, responsibility passes to the buyer.
Seller's responsibility:
- Delivery of goods to the selected carrier at the agreed location.
- Payment of transport costs up to the point where the goods are handed over to the carrier.
- Preparation of export documents and customs clearance in the country of origin.
- Ensure that goods are properly packaged for transport.
Buyer's responsibility:
- Payment of transport costs from the point where the goods are handed over to the carrier.
- Handling of import duties and any import taxes.
- Responsibility for transport from the point at which the goods are handed over to the carrier.
- Liability for any damage or loss after the transfer.
FCA is just one of many Incoterms®. If you would like to learn more about other Incoterms® such as FOB, CIF and EXW, and get an overview of their responsibilities, you can read our post about all Incoterms® 2020.
Pros and cons of FCA for the seller
Pros:
- The seller's responsibility ends when the goods are handed over to the carrier, so they do not have to worry about transport to the buyer.
Cons:
- If the buyer chooses an unreliable carrier, this may affect delivery times and the condition of the goods.
- The seller must still provide export documents and ensure that the goods meet export requirements, which can be administratively burdensome.
Pros and cons of FCA for the buyer
Pros:
- The buyer has the option of choosing their own carrier, which can provide better control over costs and delivery times.
- The risk passes to the buyer as soon as the goods are handed over to the carrier, which makes it possible to choose your own insurance solution.
Cons:
- The buyer must handle import duties and taxes, which can be time-consuming and administratively challenging.
To sum up
FCA Incoterm® (Free Carrier) provides a clear division of responsibility between buyer and seller.
The buyer assumes control of the transport and the risk, while the seller is responsible for delivering the goods to the carrier and handling the export documents.
To avoid misunderstandings, it is important that both parties understand their responsibilities and obligations in the transaction.
Get an overview of the responsibilities under all Incoterms® 2020.
FAQ
What are FCA Incoterms® 2020?
FCA (Free Carrier) is an Incoterm® established by the International Chamber of Commerce (ICC) in Incoterms® 2020. Under FCA, the seller is responsible for delivering the goods to an agreed carrier at a specified location, and once the goods are handed over, the risk and responsibility pass to the buyer.
What does Incoterms® FCA mean?
Incoterms® FCA means that the seller delivers the goods to the carrier chosen by the buyer at an agreed location. Once the goods have been handed over to the carrier, the risk and responsibility for the goods passes to the buyer. This makes FCA a flexible term that is suitable for various modes of transport, especially road and air transport.
Are there any changes in FCA Incoterms® 2025?
There is no Incoterms® 2025 edition. The latest version is Incoterms® 2020. FCA Incoterm® 2020 means that the seller delivers the goods to a carrier at an agreed location. Once the goods have been handed over, responsibility and risk are transferred to the buyer, who is responsible for further transport and import processing.
What does EXW Incoterms® mean?
EXW (Ex Works) is another Incoterm® where the seller's responsibility ends when the goods are made available at the seller's location or another agreed location. The buyer is responsible for collecting the goods, paying transport costs and handling the risk from the seller's location to the destination.
What are DAP Incoterms®?
DAP (Delivered at Place) means that the seller is responsible for delivering the goods to a specific destination, but the buyer is responsible for any import duties and taxes. The risk passes to the buyer when the goods are delivered and ready for unloading at the agreed destination.
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