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)
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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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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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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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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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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 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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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 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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Transportation to final destination
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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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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.
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