"Free Carrier" (FCA) is an Incoterm used to denote that the seller's responsibility is to deliver the goods, cleared for export, to the carrier chosen by the buyer at a specified location. It is versatile and applicable to all modes of transport.

FCA Definition and Scope

Under FCA, the seller is required to hand over the goods to the first carrier at the designated location agreed upon by both parties. The term can be used for any form of transportation, including multi-modal scenarios.

Seller’s Obligations

  • Prepare goods for collection and ensure they are packaged suitably for transit.
  • Complete any necessary export documentation and customs formalities.
  • Deliver the goods to the agreed-upon location within the timeframe specified in the sales contract.

Buyer’s Obligations

  • Arrange for transportation from the designated place, including all costs related to the transport.
  • Manage the import process, including customs clearance and payment of all duties and taxes.

Risk and Cost Transfer Points

Risk transfers from the seller to the buyer at the moment the goods are handed over to the first carrier. Therefore, the buyer needs to have insurance in place from this point onward.

Benefits and Considerations

  • Benefits: FCA allows the buyer greater control over the shipping process and can be cost-effective in terms of shipping and insurance.
  • Considerations: The buyer assumes the risk earlier in the shipping process, which requires a good understanding of logistics and customs procedures.

Common Scenarios

  • Particularly useful for containerized goods where the buyer can manage freight costs more effectively.
  • Beneficial in situations where the seller has limited access to international shipping routes.