Meaning of FCA under Incoterms 2020

 

FCA (named place)  FREE CARRIER (Incoterms 2020)

FCA under Inco Terms 2020 means FREE CARRIER.  Like all Inco Terms, FCA also needs to be followed by a named place.  The year of Inco Terms rules with the detailed named place is required to be mentioned in Sale Contract between Exporter and Importer to avoid problems or dispute on risks and costs in delivery of goods.

FCA (Free Carrier) terms of delivery can be used for all modes of transport – Sea, Air or Land.  Under FCA (Free Carrier  ) terms, the exporter’s risks and costs on delivery of goods extends up to the named place mentioned in the terms.

FCA terms perform different functions under delivery terms, depended up on the named place.  According to ICC, FCA term is treated as a versatile delivery term. The term FCA – Free Carrier is used, where the Seller’s risks and costs of delivery of goods ends at Seller’s country.  The named place mentioned under FCA Inco terms could be at Seller’s premises, intermediate location or at the load port of shipment. 

The main carriage and on carriage under FCA terms are arranged by importer under International Trade.

Under Free Carrier terms of delivery (FCA), the responsibility of export customs clearance at load port is with the Seller.

Usually, the FCA (FREE CARRIER) Inco terms of delivery is suitable for export by air and Deemed Exports. 

Pre Carriage of goods is arranged by exporter (seller) to the named place mentioned in the terms.   The named place could be a warehouse, port terminal, or a transport transshipment hub.  Risks of Seller under FCA terms ends, when goods are ready for unloading at named place mentioned. C

Click here to read about Ex-works, FOB,FCA,CPT,CIP,DAP,DPU,DDP,FAS,CFR and CIF  under INCO TERMMS 2020

 

FCA –Free Carriage (named Place)

 

Costs

Risks

Warehouse services

Seller

Seller

Marking and labeling

Seller

Seller

Packing of Goods

Seller

Seller                                   

Loading at Seller’s premises

Seller*

Seller*

Transportation from Seller’s premises to Load port

Seller*

Seller*

Unloading at  Load port

Seller*

Seller*

Loading to Vessel/Aircraft

Seller*

Seller*

Export documentation

Seller

Seller

Export Customs Clearance

Seller

Seller

Export Taxes and duties (if any)

Seller

Seller

Handling  at Load Port

Seller

Seller

Main Carriage(Ocean Freight/Airfreight)

Buyer

Buyer

Import Customs Clearance

Buyer

Buyer

Import Documentation

Buyer

Buyer

Import Taxes and Duties (if any)

Buyer

Buyer

Transportation to  final destination

Buyer

Buyer

Unloading at  final destination

Buyer

Buyer

This diagram is meant for movement of goods for exports under FCA, 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.

 

If named place under FCA is at buyer’s premises, the costs and risks transfer from seller to buyer when goods are loaded to the means of transport nominated by the buyer or placed them at the disposal of the buyer’s carrier.  So, In an Export Import trade,   if the named place is at seller’s premises under FCA, the pre carriage, main carriage and on carriage are under the risks and costs of buyer except export customs clearance and taxes if any which is under seller’s  liability.

FCA delivery term is widely used for the shipments by air.  FCA also may preferably be used for movement of goods under deemed exports where the goods are delivered within the country.

Click here to read other delivery rules under Inco terms  

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C Rules of Delivery terms under Incoterms 2020     F Rules of Inco Terms 2020E Category of Incoterms 2020     Omni Model Inco Terms of Delivery 2020     FOB and CFR under Inco terms 2020    CIF and FOB under Inco terms 2020     Do Inco Terms rules talk about payment of goods?     Does Incoterms explains about ownership of goods?      Inco Terms used under Sea and Inland waterways only     Difference between Omni model Inco Terms and Marine Restricted     When does Bank use IncoTerms ?     Compare CIF and DPU from Inco terms 2020 point of view     CIF and DAP under Inco terms 2020     Difference between FAS and FOB under Inco terms 2020     CFR and FAS, A Comparison under Inco terms 2020     FAS and CIF under Inco terms 2020          CIF terms, Importer or Exporter responsible to unload the goods?       Who arranges insurance under DDP terms of delivery as per Incoterms 2020?          On Carriage under Delivery of goods, easily explained     What is Main Carriage under delivery terms     What does Pre Carriage mean under Terms of delivery     11 Terms of Delivery easily explained under Incoterms 2020      Distinguish between EXW and CIF under delivery rules     Difference between CFR and EXW under delivery rules     A Comparison between FOB and EXW  


Comments


Azeem Akhtar: So, In an Export Import trade, if the named place is at buyer’s premises under FCA, the pre-carriage, main carriage and on carriage are under the risks and costs of buyer except export customs clearance and taxes if any which is under seller’s liability.

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