Incoterms 2020
FCA Incoterm (Free Carrier) – Meaning, Risk & Costs
FCA (Free Carrier) under Incoterms 2020: where risk transfers, who pays for carriage, and seller and buyer obligations. Works with any mode of transport.
- Rule
- FCA – Free Carrier (named place of delivery)
- Transport mode
- Any Mode of Transport
- Insurance required
- No
- Export clearance
- Seller
- Import clearance
- Buyer
- Main carriage
- Buyer
Free Carrier (FCA) means the seller delivers the goods to the carrier or another person nominated by the buyer at the seller's premises or another named place. The parties are advised to specify as clearly as possible the point within the named place of delivery, as risk transfers at that point.
FCA is versatile and works with any mode of transport. If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs elsewhere, the seller is not responsible for unloading their vehicle.
A significant update in Incoterms 2020 allows the buyer to instruct their carrier to issue a bill of lading with an on-board notation to the seller, useful for letter of credit transactions.
When risk transfers under FCA
When goods are delivered to the carrier at named place
When costs transfer under FCA
When goods are delivered to carrier
Seller obligations under FCA
- Deliver goods to carrier at named place
- Clear goods for export
- Load goods if delivery at seller's premises
- Provide transport document
- Assist with import formalities if requested
Buyer obligations under FCA
- Nominate carrier and notify seller
- Arrange and pay for main carriage
- Handle import customs clearance
- Pay import duties and taxes
- Bear risks after delivery to carrier
Who is responsible for what under FCA
- Export customs clearance: Seller
- Import customs clearance: Buyer
- Loading: Seller
- Main carriage: Buyer
- Unloading: Buyer
- Delivery to destination: Buyer
Common uses of FCA
- Container shipments
- Air freight
- Road transport
- Multimodal transport
FCA is best for
- Container shipping (delivery to terminal)
- When buyer arranges main transport
- Multimodal shipments
Risks to watch with FCA
- Clear specification of delivery point needed
- Coordination with buyer's carrier
More in this directory
- FOB Incoterm (Free on Board) – Meaning, Risk & Costs
- CFR Incoterm (Cost and Freight) – Meaning, Risk & Costs
- CIF Incoterm (Cost, Insurance and Freight) – Meaning, Risk & Costs
- CIP Incoterm (Carriage and Insurance Paid To) – Meaning, Risk & Costs
- CPT Incoterm (Carriage Paid To) – Meaning, Risk & Costs
- DAP Incoterm (Delivered at Place) – Meaning, Risk & Costs
Frequently asked questions
What does FCA mean in shipping?
FCA stands for Free Carrier. Free Carrier (FCA) means the seller delivers the goods to the carrier or another person nominated by the buyer at the seller's premises or another named place.
When does risk transfer under FCA?
When goods are delivered to the carrier at named place
Who pays for main carriage under FCA?
The buyer pays for main carriage under FCA.
Who handles customs clearance under FCA?
Under FCA, the seller handles export clearance and the buyer handles import clearance.
Is insurance required under FCA?
No. FCA does not require either party to buy insurance, though either may choose to arrange it.