Incoterms Rules: FCA Free Carrier

Incoterms® FCA - Free Carrier

FCA Incoterms - Free Carrier - What is the meaning of FCA shipping term? With the FCA Incoterm, the seller is responsible for delivery to the named place. Usually, the named place is the terminal or warehouse.

The Seller is responsible for the majority of the tasks in the country of export such as documentation and commercial invoice. Risk and cost are transferred to the buyer as soon as delivery takes place to the named place. Unloading for example under the FCA Incoterm is the responsibility of the buyer.

Graph depicting Incoterm FCA responsibilities

Using the shipping term Free Carrier (FCA), the seller must take responsibility for the export clearance. In addition, using the FCA shipping term, the seller is also responsible for delivery to the carrier at the named place.

The buyer under the FCA shipping term is responsible for loading charges, main carriage and transportation, discharge and onforwarding as well as import clearance.

The Free Carrier Incoterm can be used for all modes of transport, including FCL, LCL, and air. It is commonly used for containerized ocean freight.

Did you know? Using the FCA shipping term, the seller, in addition to export customs formalities, is responsible for loading the goods when the seller’s place of business is the named place of delivery, unless a different decision has been agreed upon.

With all incoterms, it is important to understand the obligations of both the buyer and seller. There are eleven incoterms covering international shipments, are you aware of all the different terms? If you need FCA shipment support, please reach out to the team!