Incoterms FCA - Free Carrier (2024)

FAQs

What does incoterm FCA Free Carrier mean? ›

What does FCA Mean in shipping terms? The FCA Incoterm is an agreement that means “Free Carrier,” where the seller's obligations are to deliver the cargo to an agreed-upon port, known as the “Named Place.” The seller is responsible for exporting the shipment, and all steps before that.

Free Carrier Responsibilities and Risk

Under the Incoterms 2020 rules, FCA means the seller loads the goods on the buyer's transport at the seller's premises, or the seller delivers them to another named place. Most often, the buyer hires a transport that picks up the goods at the seller's warehouse.

Under FCA Incoterms, neither the seller nor the buyer is obligated to insure the goods. However, insuring the goods is highly recommended to protect against potential risks during transit.

Under the Free Carrier, or FCA Incoterms® rule, the buyer is responsible for all freight costs.

However, there are also some disadvantages to consider when using FCA. One potential drawback is that if goods are damaged during transport, it may be more challenging for buyers to hold sellers accountable since risk transfers at an earlier stage compared to other Incoterms like CIF or DAP.

Of all the rules, the EXW term places the least amount of risk on the seller, leaving the buyer with the majority of the responsibility. FCA determines that the risk transfer occurs when the seller loads the goods on the buyer's transport or when the seller delivers the goods to a named place of delivery.

Under the shipping terms for the FCA Incoterms (short for “Free Carrier”), the seller is responsible for export clearance and delivery of goods to the carrier at the named place of delivery.

For example, Joe Seller ships goods to Bob Buyer under an FCA shipping term agreement. Bob opts to use his shipper with whom he's done business before. Joe agrees, and it's his responsibility to deliver the goods to the shipper. At this point, all liability passes to Bob.

The main difference between Delivered at Place (DAP) and FCA is who pays for the transportation costs. With FCA, the seller is responsible for all shipping costs until the goods are handed off to the buyer's chosen carrier at the origin.

Under the new FCA Incoterms 2020, the carrier issues a bill of lading, so the liability is assigned to the buyer after loading if there is any damage.

Who is responsible for packaging in FCA Incoterms? ›

Under the FCA Incoterm, the seller or exporter is accountable for several key aspects: Packaging: The seller is responsible for adequately packaging the goods for safe transport. Conformity and Eligibility: Ensuring that the goods meet contract conditions and export requirements.

Price and Payment

4.2 Unless otherwise stated in the Order, the Supplier may only invoice the FCA on or after delivery of the Goods or supply of the Services. Invoices will not be accepted unless they quote the relevant Purchase Order number.

The Financial Conduct Authority (FCA) regulates the financial services industry in the UK. Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers.

Each year your firm pays regulatory fees and other charges (levies). Your fees and levies fund the Financial Conduct Authority (FCA) but also contribute to other organisations: Payment Systems Regulator (PSR)

Financial Conduct Authority: the body that regulates the financial services industry. Collins English Dictionary.

FCA: Free Carrier

The Incoterm FCA stands for Free Carrier and means that the seller should deliver the goods to the carrier at the buyer's named place. The seller is responsible for clearing the goods for export and covers the costs of carriage to a named place.

In the Incoterm FCA, or Free Carrier, the seller is responsible for most or all of the export details at origin and the buyer is responsible for destination operations and some select origin operations.

The FCA Incoterm or “Free Carrier” states that the seller must deliver the goods, ready for export, to the buyer's chosen carrier at a specific agreed-upon location listed in the sales contract.