Advantages of FCA for Buyer
The below information is about the merits for importers when contract of carriage is on FCA basis.
Here are the 12 benefits for buyer under FCA delivery terms:
01. In an FCA delivery rules business transaction, the Importer takes over the risks and costs from the exporter when goods are loaded to the Carrier or placed at the disposal of buyer. Comparatively with most of the delivery rules for movement of goods from buyer’s place to seller’s place, the risks of buyer is higher thereby he keeps more profit margin against the export sales under FCA delivery terms. This is an advantage for importer under FCA delivery terms in an international trade.
02. One of the benefits for importer under FCA is that, when handling main carriage, import clearance, import govt. rules and regulations, the importer strengthens his experience in such areas which can be utilized for similar transactions with same supplier or with different exporters; naturally strengthens the importer’s volume of business.
03. The FCA delivery rules allows the importer to hold complete control over main carriage, contracting sea freight with shipping carriers thereby ultimate strength to negotiate ocean freight and services under import export business. This is another advantage for buyer under FCA terms.
04. One of the other merits for importer under FCA terms of delivery is that the government rules and regulations of pre carriage need not be known for a buyer at buyer’s country under FCA terms of delivery as those responsibilities are undertaken by the seller.
05. Under FCA, the buyer needs not worry about export customs clearance process at exporter’s country, export documentation, export taxes if any. This is another benefit for importer when carriage contract is on FCA basis in import export business.
06. In an FCA terms, once the goods are loaded to the vessel, the buyer takes care of total movement of goods and safety of goods are secured by the buyer in an export import business. This is another advantages for a buyer under FCA delivery terms.
07. One of the main advantages for an importer under FCA terms is that the cost calculation against import customs clearance, import duties, import documentation and on carriage to final destination of buyer can be assessed by him under FCA terms of delivery rules, as the importer undertakes all such activities.
08. Another benefit for importer under FCA is that the selection of main carriage is done by importer thereby; the control over ocean freight is with the importer.
09. The cost of movement of goods from the load port to final destination can be ascertained by importer under FCA which helps him to do further business transactions with same supplier or suppliers with similar delivery terms. This is also a merit for buyer under FCA terms.
10. Since the ocean freight is contracted by the importer, he holds control over releasing Bill of Lading and shipping tracking information from the shipping carrier if the contract of carriage is FCA. This is also an advantage for importer under export import trade where delivery terms are on FCA basis.
11. Since the risks and costs are covered by seller at his country, under FCA rules of delivery, it is comparatively easier to handle rest of the movement of goods in buyer’s country. This is an advantage for importer under FCA delivery rules.
12. Another benefit for importer under FCA terms is that, in an import export trade, the importer is liable to unload the goods under FCA delivery rules and thereby the importer can ensure the safety of goods without damage when unloading the goods at final destination.
The details provided above are about the advantages for a buyer under FCA terms.
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