Difference between FCA AND FOB under Inco terms 2020

 

FOB and FCA – A comparative study as per Inco terms 2020, ICC

How to campare FOB and FCA in terms of Incoterms 2020?   Let us have study.

According to ICC under Incoterms 2020, FOB delivery rule is known as Marin restricted  meant for  movement of goods by Sea and inland waterways only.  However, FCA  is used for movement of goods for any mode of transport  (Sea,Air or Land).

So FOB is widely used for movement of goods by Sea and Inland waterways whereas FCA is widely used for movement of goods by air.

Under FOB, the seller’s responsibility on costs and risks transfers to buyer when goods are gone onboard the vessel whereas under FCA, the seller transfers his risks and costs to buyer, once the goods are loaded to the first main carrier. 

 

FCA –Free Carriage (named Place)

 

FOB – Free On Board (named Places)

 

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  Load port

Seller*

Seller*

 

Unloading at Loading 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)

Buyer

Buyer

 

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 to  final destination

Buyer

Buyer

 

Transportation from destination

 port to named place

Buyer

Buyer

Unloading at  final destination

Buyer

Buyer

 

Unloading at named place

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.

 

Two  posts explaining about FCA and FOB  are available in this website where both FCA and FOB have been explained in simple language.  You may click below to read the same:

 

FOB  Free On Board

 

FCA  Free Carrier

 

We hope, the above information helped you in understanding the difference between FCA and FOB.

Share below your experience in handling FCA and FOB for movement of goods under International Trade.

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Difference between CFR and EXW under delivery rules     A Comparison between FOB and EXW     FAS Vs.EXW, relate to Inco Terms 2020     Difference between DDP and EXW under Inco terms 2020     EXW Vs DAP, what are the differences?     How to differentiate EXW and DPU     Distinguish between CIF and CIP under Inco term delivery rules     Compare CIP and DPU based on delivery rules of ICC     Under FCA, who is responsible for export customs clearance?       Whose responsibility to arrange Insurance under FAS terms        Can I use FOB under Air shipment?     Minimum delivery risk, which Inco term is better for buyer?     DAP and CFR under Inco terms 2020     Compare between DAP and FOB rules for delivery     FAS and DAP under Inco terms 2020     How to differentiate DDP and DAP     DDP and FAS, a differentiating study   

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