CPT Vs.FCA under Delivery rules of ICC 2020 (Inco terms)
Free Carrier to a named place FCA and Carriage Paid To a named destination
Here, let us distinguish between FCA and CPT.
Usually under FCA, named place is in Seller’s country where under CPT terms, the named place is in Buyer’s country.
Under FCA terms, when goods reached at the named place at Seller’s country, the seller’s responsibility of costs and risks on movement of goods transfers to the buyer. However, under CPT terms, the seller’s responsibility of cost ends when goods reached at the named place in buyer’s country. However, under CPT terms, the risk transfers to the buyer from seller immediately up on the goods delivered to the main carriage. So under CPT, costs and risks do not move equally from seller to buyer, compared to FCA.
Under CPT, the main carriage is undertaken by the seller. But under FCA, the buyer is responsible for the costs and risk of main carriage. So the control over main carriage, freight selection and export data are with the exporter under CPT terms where under FCA, such advantages lacking with the Seller.
CPT – Carriage Paid To (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 Loading Port
|
Seller
|
Seller
|
Loading to Vessel/Aircraft
|
Seller
|
Buyer
|
|
Loading to Vessel/Aircraft
|
Buyer
|
Buyer
|
Export documentation
|
Seller
|
Buyer
|
|
Export documentation
|
Buyer
|
Buyer
|
Export Customs Clearance
|
Seller
|
Buyer
|
|
Export Customs Clearance
|
Buyer
|
Buyer
|
Export Taxes and duties (if any)
|
Seller
|
Buyer
|
|
Export Taxes and duties (if any)
|
Buyer
|
Buyer
|
Handling Charges at Load Port
|
Seller
|
Buyer
|
|
Handling Charges at Load Port
|
Buyer
|
Buyer
|
Main Carriage
(Ocean Freight/Airfreight)
|
Seller
|
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 from destination
port to named place
|
Seller
|
Buyer
|
|
Transportation from destination
port to named place
|
Buyer
|
Buyer
|
Unloading at named place
|
Buyer
|
Buyer
|
|
Unloading at named place
|
Buyer
|
Buyer
|
Detailed posts about FCA and CPT may be read by clicking the below links to understand the difference easily:
CPT Carriage Paid To
FCA Free Carrier
Hope, the above information about difference between FCA and CPT helps you. You may also share your experience about the above subject - distinguish between CPT and FCA below by commenting.
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
Meaning of FCA under Incoterms 2020 EXW,Ex Works under Inco terms 2020 Inco Terms, Different stage where risks and costs transfer from Seller to Buyer Parties involved to use Incoterms directly and indirectly 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?