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FCA stands for Free Carrier, and it is one of the most widely used Incoterms®.
Under this Incoterm®, the seller is responsible for delivering the goods to an agreed carrier at a specified location — which may be the seller's own premises or another location nominated by the buyer.
Once the goods have been handed over to the carrier, risk and responsibility transfer to the buyer. FCA is commonly used for road and air transport, but applies to all modes of transport.
Responsibilities under FCA
With FCA, the seller is responsible for arranging delivery and covering any costs until the goods are handed over to the carrier. From that point on, responsibility passes to the buyer.
The seller is responsible for:
- Delivering the goods to the nominated carrier at the agreed location
- Covering transport costs up to the point of handover
- Preparing export documents and handling customs clearance in the country of origin
- Ensuring goods are properly packaged for transport
The buyer is responsible for:
- All transport costs from the point of handover onwards
- Import duties and any applicable taxes in the destination country
- Arranging onward transport from the handover point
- Any loss or damage occurring after the transfer of risk
To learn how FCA compares to other Incoterms® such as FOB, CIF and EXW, check out our full overview of Incoterms® 2020.
Pros and cons of FCA for the seller
Pros:
- The seller's responsibility ends once the goods are handed over to the carrier — no need to worry about onward transport to the buyer
Cons:
- If the buyer selects an unreliable carrier, it can affect delivery times and the condition of the goods
- The seller must still handle export documentation and ensure the goods meet all export requirements, which can be administratively demanding
Pros and cons of FCA for the buyer
Pros:
- The buyer gets to choose their own carrier, giving them greater control over costs and delivery times
- Risk transfers as soon as the goods are handed over, which means the buyer can arrange their own insurance solution from that point
Cons:
- The buyer is responsible for import duties and taxes, which can be time-consuming and administratively complex
To sum up
FCA Incoterm® (Free Carrier) offers a clear division of responsibility between buyer and seller.
The buyer takes control of transport and assumes the risk, while the seller is responsible for getting the goods to the carrier and handling export documentation.
To avoid misunderstandings, it's important that both parties have a clear understanding of their respective responsibilities before the transaction takes place.
Get a full overview of responsibilities under all Incoterms® 2020..
FAQ
What is FCA Incoterm® 2020?
FCA (Free Carrier) is an Incoterm® established by the International Chamber of Commerce (ICC) as part of Incoterms® 2020. Under FCA, the seller is responsible for delivering the goods to an agreed carrier at a specified location. Once the goods are handed over, risk and responsibility transfer to the buyer.
What does FCA Incoterm® mean in practice?
FCA means the seller delivers the goods to the carrier nominated by the buyer at an agreed location. From that point, the risk and responsibility for the goods pass to the buyer. This makes FCA a flexible Incoterm® that works across all modes of transport — particularly road and air.
Are there any changes in FCA Incoterms® 2025?
There is no Incoterms® 2025 edition. The current version is Incoterms® 2020. Under FCA Incoterm® 2020, the seller delivers the goods to a carrier at an agreed location, after which responsibility and risk transfer to the buyer, who handles onward transport and import processing.
What does EXW Incoterms® mean?
EXW (Ex Works) is an Incoterm® where the seller's responsibility ends once the goods are made available at the seller's premises or another agreed location. The buyer is responsible for collecting the goods, covering all transport costs and bearing the risk from that point all the way to the final destination.
What is DAP Incoterms®?
DAP (Delivered At Place) means the seller is responsible for delivering the goods to a named destination. The buyer handles import duties and taxes, and assumes risk once the goods arrive and are ready for unloading at the agreed location.
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