Incoterms and shipping
FCA (Free Carrier)
Definition
The seller clears the goods for export and hands them to the buyer's carrier at a named place.
FCA at a glance
- Transport
- Any mode
- Risk passes
- When the goods are loaded on the buyer's transport at the seller's premises, or handed to the carrier at another named place
- Insurance
- No obligation
Under FCA the seller delivers the goods, cleared for export, to the carrier or person nominated by the buyer at the named place. If that place is the seller's premises, the seller also loads the goods onto the buyer's vehicle. Risk passes at delivery.
FCA is the ICC's recommended rule for containerised cargo, because the seller normally hands containers over at a terminal or its own site long before they are loaded on the ship. Incoterms 2020 lets the parties agree that the buyer's carrier will issue an on board bill of lading to the seller, which helps with letters of credit.
Related terms
- Incoterms 2020The ICC's eleven standard trade terms that set who pays for and bears the risk of each step of delivery.
- FOB (Free on Board)The seller delivers the goods on board the buyer's vessel at the named port of shipment, cleared for export.
- CIF (Cost, Insurance and Freight)Like CFR, with the seller also buying minimum cargo insurance for the voyage.
- DAP (Delivered at Place)The seller bears costs and risk until the goods arrive at the named destination, ready for unloading.
- DDP (Delivered Duty Paid)The seller delivers to the named destination, cleared for import with duties and taxes paid.