FCA (Free Carrier)
Incoterm whereby the seller delivers the goods, cleared for export, to the carrier or person nominated by the buyer at the agreed place.
Definition and Principle
FCA (Free Carrier) is one of the most widely used Incoterms in international trade. The seller delivers the goods, cleared for export, to the carrier or another person nominated by the buyer at the named place. It is suitable for all modes of transport, including multimodal.
Two Delivery Scenarios
Incoterms 2020 distinguish two cases for FCA:
- Delivery at the seller's premises: delivery is completed when the goods are loaded onto the means of transport provided by the buyer
- Delivery at another place: delivery is completed when the goods, loaded on the seller's means of transport, are placed at the disposal of the buyer's carrier, ready for unloading
Incoterms 2020 Innovation: On-Board Bill of Lading
FCA 2020 includes an option allowing the buyer to instruct their carrier to issue an on-board bill of lading (B/L) to the seller. This resolves the recurring issue of letters of credit requiring a "shipped on board" B/L when the seller delivers goods at an inland terminal.
Allocation of Risks and Costs
- Seller: packaging, export clearance, delivery to the named place
- Buyer: main carriage, insurance (not mandatory), import clearance, unloading
Risk transfers at the point of delivery. FCA is recommended by the ICC as an alternative to EXW for international trade and to FOB for containerised transport.