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.
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FCA –Free Carriage (named Place)
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FOB – Free On Board (named Places)
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Costs
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Risks
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Costs
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Risks
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Warehouse services
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Seller
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Seller
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Warehouse services
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Loading at Seller’s premises
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Seller*
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Seller*
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Loading at Seller’s premises
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller*
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Seller*
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Unloading at Load port
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Seller*
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Seller*
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Unloading at Loading Port
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Seller
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Seller
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Loading to Vessel/Aircraft
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Seller*
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Seller*
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Loading to Vessel/Aircraft
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Main Carriage
(Ocean Freight/Airfreight)
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Buyer
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Buyer
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Main Carriage
(Ocean Freight/Airfreight)
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Buyer
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Transportation to final destination
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Buyer
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Buyer
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Transportation from destination
port to named place
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Buyer
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Buyer
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Unloading at final destination
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Buyer
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Buyer
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Unloading at named place
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Buyer
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Buyer
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*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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