Difference between FCA and DAP under Inco terms 2020
How to differentiate DAP with FCA under delivery rules of incoterms 2020?
As you know, DAP means Delivered at a named place goods unloaded and FCA means Free carriage of cost and risk to a named location.
As name indicates, under DAP, the exporter delivers goods to Importer’s named place by undertaking pre carriage, main carriage, export customs clearance, on carriage and unloading of goods. Where as under FCA, the exporters transfers his risks and costs of movement of goods to importer immediately upon goods are gone onboard the main carrier, either on the vessel, aircraft or other means.
Under FCA terms, the seller’s risks and costs transfer to buyer at seller’s country. But the costs and risks transfers from seller to buyer in buyer’s country under DAP delivery rules as per Incoterms 2020
Under DAP, main carriage is undertaken by Importer, but under FCA the said main carriage is under the risk of Buyer.
|
DAP – Delivered at Place (named Place)
|
|
FCA –Free Carriage (named Place)
|
|
|
Costs
|
Risks
|
|
|
Costs
|
Risks
|
|
Warehouse services
|
Seller
|
Seller
|
|
Warehouse services
|
Seller
|
Seller
|
|
Marking and labeling
|
Seller
|
Seller
|
|
Marking and labeling
|
Seller
|
Seller
|
|
Packing of Goods
|
Seller
|
Seller
|
|
Packing of Goods
|
Seller
|
Seller
|
|
Loading at Seller’s premises
|
Seller
|
Seller
|
|
Loading at Seller’s premises
|
Seller*
|
Seller*
|
|
Transportation from Seller’s
premises to Load port
|
Seller
|
Seller
|
|
Transportation from Seller’s
premises to Load port
|
Seller*
|
Seller*
|
|
Unloading at Loading Port
|
Seller
|
Seller
|
|
Unloading at Load port
|
Seller*
|
Seller*
|
|
Loading to Vessel/Aircraft
|
Seller
|
Seller
|
|
Loading to Vessel/Aircraft
|
Seller*
|
Seller*
|
|
Export documentation
|
Seller
|
Seller
|
|
Export documentation
|
Seller
|
Seller
|
|
Export Customs Clearance
|
Seller
|
Seller
|
|
Export Customs Clearance
|
Seller
|
Seller
|
|
Export Taxes and duties (if any)
|
Seller
|
Seller
|
|
Export Taxes and duties (if any)
|
Seller
|
Seller
|
|
Handling at Load Port
|
Seller
|
Seller
|
|
Handling at Load Port
|
Seller
|
Seller
|
|
Main Carriage
(Ocean Freight/Airfreight)
|
Seller
|
Seller
|
|
Main Carriage
(Ocean Freight/Airfreight)
|
Buyer
|
Buyer
|
|
Import Customs Clearance
|
Buyer
|
Buyer
|
|
Import Customs Clearance
|
Buyer
|
Buyer
|
|
Import Documentation
|
Buyer
|
Buyer
|
|
Import Documentation
|
Buyer
|
Buyer
|
|
Import Taxes and Duties (if any)
|
Buyer
|
Buyer
|
|
Import Taxes and Duties (if any)
|
Buyer
|
Buyer
|
|
Transportation from destination
port to named place
|
Seller
|
Seller
|
|
Transportation to final destination
|
Buyer
|
Buyer
|
|
Unloading at named place
|
Buyer
|
Buyer
|
|
Unloading at final destination
|
Buyer
|
Buyer
|
*FCA diagram shown above is meant for movement of goods for exports, wherein named place is Port of loading. FCA delivery term means loading goods to the means of transport provided by the buyer or placing them at the disposal of the buyer’s carrier. Read the separate post about FCA in this website for better understanding.
The meaning and complete explanation about DAP and FCA are explained separately in this website and you may click below to read in detail:
DAP Delivered at Place
FCA Free Carrier
Hope the above information about FCA and DAP helped you to understand the difference between DAP and FCA. Would you like to add more information about this subject on FCA and DAP, share below your thoughts and experience in handling FCA and DAP.
Learn practical problems and solutions in Exports and Imports
Click here to read latest Inco terms rules for delivery of goods
Banking rules related to Exports and Imports in India
How to open Letter of Credit, easily explained here
Is it necessary to use trade mark of Incoterms under Sale contract Mention year of Inco Terms under Sale contract Inco Terms and Sale Contract between buyer and seller Inco Terms 2020 Rules for Delivery of Goods Buyer or Seller? Who pays Insurance under DAP Inco terms? Under FCA Inco terms, Insurance is paid by buyer or seller? Under EXW Ex works, who arranges Insurance? 04 Categories of Inco Terms 2020 D Category of Delivery terms under Incoterms 2020 CIP terms of movement, Unloading goods by Buyer or Seller? C Rules of Delivery terms under Incoterms 2020 F Rules of Inco Terms 2020E Category of Incoterms 2020 Omni Model Inco Terms of Delivery 2020 FOB and CFR under Inco terms 2020