Difference between EXW and FCA, Inco terms 2020

How to differentiate FCA and EXW under Inco terms 2020?

As we know, EXW means Ex Works.  The goods are placed by the seller either at his premises or at the named location where contracted carriage between buyer and seller under their sale contract. In an export import business,  if contract is on EXW, the exporter completes his liability of cost and risk when placing the goods at his premises or at the named place for the disposal of importer for pre carriage.   All further process on movement of goods are undertaken by the importer including customs clearance at exporter’s country. 

Under FCA (Free Carrier), the goods are placed at the exporter’s premises or named place contracted  in carriage agreement mutually by exporter and importer.   Also under FCA, the liability on risk and cost ends at Exporter’s side, once goods placed for loading for further movement to importer’s place.  But customs clearance  at load port in Exporter’s country is undertaken by the Exporter under FCA. 

Here the major difference between FCA and EXW is that the export documentation and export customs clearance at exporter’s country is undertaken by  exporter in the case of FCA and importer under EXW.

 *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 Detailed information about EXW and FCA available at the following link to understand the difference between FCA and EXW more clearly.

EXW   Ex Works

FCA  Free Carrier

We hope, the above information about the difference between EXW and FCA helps you  to understand about latest version of Inco Terms 2020 about EXW and FCA

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