FAS and FCA, How do they differ under Inco terms 2020?
The FCA delivery rule is used for all modes of transport to move the goods under Incoterms 2020 where as the FAS delivery term is used for movement of goods by Sea and Inland waterways.
Under FAS terms, goods are placed near a Vessel nominated by the buyer for further movement by buyer whereas the goods are placed at a named location contracted which could be at Seller’s premises, an intermediate place, Terminal Quay or Frontier.
FAS is used for movement of goods by Sea where as FAS is ideal to us for the movement of goods by Air. FCA may preferably be used for movement of goods as Deemed Exports, Free Trade Zones, Export Oriented Units where the goods does not leave the seller’s country.
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FAS – Free Along Side (named Place)
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FCA –Free Carriage (named Place)
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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 Loading 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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Loading to Vessel/Aircraft
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Buyer
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Buyer
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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 from destination
port to named place
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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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Unloading at 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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*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.
Meaning and explanation about FCA and FAS are clearly stated separately in this website, you may click below to read:
FAS Free Alongside Ship
FCA Free Carrier
We hope the information about the difference between FCA and FAS helped you. Please comment below your knowledge and experience in handling movement of cargo as per Incoterms 2020.
Click here to read other delivery rules under Inco terms
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How to open Letter of Credit, easily explained here
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