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FCA Free Carrier.

Seller hands the goods, cleared for export, to the carrier the buyer nominated at a named place. In 2020 the parties may agree that the buyer's carrier issues an on-board bill of lading to the seller.

Where risk passes

FCA named place of delivery
SellerCarrierAlongsideOn boardImport portDestinationUnloaded
Risk passesWhen handed to the buyer's carrier at the named place
Transport modeAny mode of transport
Main carriage booked byBuyer
Cargo insuranceNot required; buyer insures if he wants to
Export clearanceSeller
Import clearance and dutiesBuyer
Seller pays2 of 13 cost steps

Who pays what under FCA

CostPaid by
Loading at originSeller
Export customs declarationSeller
Carriage to port of exportAgreed
Unloading of truck in port of exportBuyer
Loading on vessel/airplane in port of exportBuyer
Carriage (sea/air) to port of importBuyer
InsuranceBuyer
Unloading in port of importBuyer
Loading on truck in port of importBuyer
Carriage to place of destinationBuyer
Import customs clearanceBuyer
Import duties and taxesBuyer
Unloading at destinationBuyer

Sources: ICC, Incoterms® 2020; cost split as given inWikipedia, Incoterms (section "Allocations of costs"). Duties, fit and pitfalls below are Navo's own summary, not ICC text. Incoterms® is a trademark of the ICC.

When FCA fits

Containers and consolidated cargo handed over at a terminal or the seller's premises; air and road freight.

What to watch

  • If delivery is at the seller's premises, the seller loads the buyer's vehicle. At any other place the seller delivers on his own vehicle, not unloaded.
  • Name the place precisely: an address or terminal, not just a city.
  • Since 2020 the parties can agree that the buyer's carrier issues an on-board bill of lading to the seller, useful under letters of credit.
  • Shipping under FCA? Compare freight rates and check sailings.