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FCA : Free Carrier

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FCA : Free Carrier (...named place)

In Free Carrier, the seller/exporter/manufacturer clears the goods for export and then delivers them to the carrier specified by the buyer at the named place.

If the named place is the seller's place of business, the seller is responsible for loading the goods onto the transport vehicle. If the named place is any other location, such as the loading dock of the carrier, the seller is not responsible for loading the goods onto the transport vehicle. The Free Carrier term may be used for any mode of transport, including multimodal.

The "named place" in Free Carrier and all "F" terms is domestic to the seller. "Carrier" has a specific and somewhat expanded meaning. A carrier can be a shipping line, an airline, a trucking firm, or a railway. The carrier can also be an individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight forwarder, can act as a "carrier" under this term. In such a case, the buyer names the carrier or the individual who is to receive the goods.

The Free Carrier term is often used when making an initial quotation for the sale of goods.

Normal payment terms for Free Carrier transactions are generally cash in advance and open account.

Examples
FCA Free Carrier ABC Shipping Lines Hamburg Germany
FCA Free Carrier XYZ Air Lines SFO (San Francisco International Airport)
FCA Free Carrier AZ Freight Forwarders Tokyo Japan

Incoterm Category
FCA is an "F" Incoterm where the seller/exporter delivers the goods export cleared to a carrier named by the buyer, but does not bear risk or costs once the goods have been handed over.

Modes of Transport Covered
All modes of transport including multimodal.

Seller's Responsibilities (summary)

  1. Goods-Provide the goods, commercial invoice or electronic message, and other documentation as required by the sales contract.
  2. Licenses and Customs Formalities-Obtain at own risk and cost all required export licenses, documentation and authorizations and carry out all export formalities and procedures.
  3. Carriage and Insurance-The seller has no obligation to provide carriage of goods or insurance. However, if requested by buyer, the seller may contract for carriage on standard industry terms at the buyer's risk and cost. If so, the seller must notify buyer who may chose to decline the contract and notify the seller.
  4. Delivery-Deliver the goods to the named carrier, freight forwarder or person at the named place and at the time stipulated in the sales contract. Requirements for delivery to the carrier vary depending upon the means of transport and the size of the shipment. In general, delivery is considered complete when the seller either loads the goods onto the vehicle provided, or delivers the goods to the carrier's terminal, unloaded.
  5. Risk Transfer-Assume all risks to the goods (loss or damage) until they have been delivered to the carrier.
  6. Costs-Pay all costs until the goods have been delivered to the carrier as well as all costs relating to export including duties, taxes and customs formalities.
  7. Notices-Provide sufficient notice to the buyer that the goods have been delivered to the carrier.
  8. Proof of Delivery, Transport Documents-Provide the buyer with a proof of delivery (to the carrier) or a transport document, or to assist the buyer in obtaining a transport document.
  9. Checking, Packing, Marking-Pay all costs associated with checking the quality and quantity of the goods to be in conformity with the sales contract. Provide appropriate packing (unless the goods are traditionally delivered unpackaged) as required for the transport of the goods, to the extent that the buyer has made transport circumstances known to the seller prior to the execution of the sales contract. Provide marking appropriate to the packaging.
  10. Other-Provide the buyer, at the buyer's request, risk and expense, assistance in securing documentation originating in the country of origin or of export as required for import or transshipment through another country. Provide the buyer at the buyer's request information necessary to obtain insurance.

Buyer's Responsibilities (summary)

  1. Payment-Pay for the goods as provided in the sales contract.
  2. Licenses and Customs Formalities-Obtain all import licenses, documentation and authorizations and carry out all import formalities.
  3. Carriage and Insurance-Provide for contract of carriage from the named place. No obligation to seller for insurance.
  4. Taking Delivery-Take delivery of the goods as provided in the sales contract.
  5. Risk Transfer-Assume all risk of loss or damage from the time the goods have been delivered to the carrier as provided in the sales contract.
  6. Costs-Pay all costs for carriage and insurance from the time the goods have been delivered to the carrier as provided in the sales contract. Pay all costs resulting from failure to take delivery at the named place and time. Pay all costs relating to import formalities including duties, taxes and other charges including transshipment.
  7. Notice to Seller-Give the seller sufficient notice of the name of the carrier, the time or period for delivery and the place of delivery.
  8. Proof of Delivery, Transport Document-Accept the seller's proof of delivery or transport document.
  9. Inspection(s)-Pay for the costs of pre-shipment inspection except inspections required by the country of export.
  10. Other-Pay all costs associated with securing documentation originating in the country of origin or export as required for import. Reimburse seller for costs in providing documentation or assistance. Give the seller instructions regarding carriage.
View details of other Incoterms

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© World Trade Press. Reproduced with permission.