FCA INCOTERM (Free Carrier)

Using FCA incoterm

FCA or “Free Carrier” Incoterm states that the seller must deliver the goods, ready for export, to the buyers chosen carrier at an agreed upon location. This location can 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 upon 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 can be used regardless of the mode of transport.

Seller’s obligations under FCA

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

Buyer’s obligation under FCA

  • Cost of the goods
  • International freight
  • Insurance
  • Arrival expenditures
  • Customs upon arrival
  • Inland transportation in the destination country
  • Payment of fees

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