FCA INCOTERMs (Free Carrier)

FCA incoterms or “Free Carrier” incoterms states that the seller must deliver the goods, ready for export, to the buyers chosen carrier at an agreed upon location (this may be a particular port or a carriers hub). Here the seller is responsible for the cost and risk until the goods have been loaded onto the agreed carrier. After this point the buyer becomes responsible for the cost and risk involved with delivery of the goods.

In summary, the seller must deliver the goods cleared for export to the carriers location specified by the buyer in the sales contract.

FCA Incoterm is versatile as in can be used irrespective of the mode of transport.

SELLER’S OBLIGATIONS UNDER FCA

  • Delivery of goods and documents required
  • Packaging and wrapping
  • Inland transport in the country of origin
  • Customs at origin
  • Exit charge

BUYER’S OBLIGATIONS UNDER FCA

  • Payment of the goods
  • International freight
  • Insurance
  • Arrival expenditures
  • Customs on arrival
  • Inland transport at the destination country
  • Payment of fees

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