Part of the Comprehensive Incoterms Guide
FCA In Plain English
For FCA (Free Carrier) shipping, the seller arranges most or all of the export country stages (e.g. customs, trucking within the export country). The buyer arranges all other stages to the cargo’s ultimate destination.
Where Is The Named Place For Handing Over Responsibility From The Seller To The Buyer?
The seller is liable and responsible for all tasks in their country up until the goods are delivered to the carrier at the named place, usually the terminal or a warehouse (e.g. consolidation centre). Unless the named place is the terminal, the buyer will be liable and responsible for some tasks in the export country.
What Does The ICC Say?
Recommended for containerized freight.
Is This A Good Choice?
FCA overcomes the disadvantages of EXW, where the buyer is in a worse position than the seller for arranging local transport and customs.
FCA Tips And Tricks
- If the named place is a forwarder’s warehouse or some other terminal that is not the seaport or airport, the seller remains liable and responsible for loading the truck at their premises, with the carrier responsible for unloading the truck at the named place. The buyer is therefore liable and responsible for some tasks in the export country (transportation and terminal charges).
- The named place can also be the supplier’s factory, making it similar to EXW, excepting the supplier is responsible for loading the truck. The buyer is therefore liable and responsible for some tasks in the export country (transportation and terminal charges).
- Irrespective of where the named place is, the seller is still responsible for all export and documentation tasks. There’s one exception, which is relevant only for letter of credit payments: the buyer can now instruct the carrier to add the word “aboard” onto the Bill of Lading.