What is FCA terms of delivery?

FCA - Free Carrier (Place at Origin)

Inco Terms for movement of goods is revised as Incoterms 2020.  The importers and exporters are suggested to use the latest versionClick here to read the contents of Inco Terms 2020.

 

“Free Carrier” implies that the seller delivers the goods cleared for export to the carrier or someone else nominated by the buyer at the seller’s premises or another named place.

Regarding terms of delivery FCA, the export cleared goods are delivered by the seller to the carrier at the named and defined location specified in the contract. So the commitment to deliver goods satisfies by the seller up to the location where FCA contracts. From the mentioned point of location, purchaser needs to take responsibility. In a FCA terms of delivery, normally seller’s help is required by the purchaser to deliver products at contracted place, which can be a terminal or transport hub, forwarder’s distribution center etc at purchaser's expense and risks. If the location to convey goods has not been said in the contract, the seller can arrange to deliver the goods to the location where purchaser's transporter is accessible by mutually accepting. In a FCA terms of delivery, the delivery of goods additionally can be at the seller’s premises, if mutually agreed amongst purchaser and dealer. Where the named place is the seller’s premises, then the seller is responsible for stacking the goods onto the truck etc. This is how FCA difference from Ex Works EXW

This term can be used for Air and Sea transport only.

 

Obligation and expenses of seller:-

All responsibilities and charges should incur by seller include Warehouse Services, Export packing, assistance in obtaining any exports licence or other official authorisation, Loading at point of Origin, Origin Inland Freight, Origin Port Charges, Export Customs clearance, Origin Forwarder Fees,

The risk passes from the seller to the buyer at the named place of delivery point.

 

Inco Terms for movement of goods is revised as Incoterms 2020.  The importers and exporters are suggested to use the latest versionClick here to read the contents of Inco Terms 2020.

Obligation and expenses of Buyer:-

All responsibilities and charges must incurs by Buyer includes Ocean/Air Freight, Destination Port Charges, Import Customs clearance , Import Duties and Taxes, Delivery cartage to Final Destination.

 

 

 

Inco Terms for movement of goods is revised as Incoterms 2020.  The importers and exporters are suggested to use the latest versionClick here to read the contents of Inco Terms 2020.

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Comments


shwetha: I thought you will be the apt person to give me an overall picture of how the FOC (free of cost or free of charge) works in practicality of the trade world. Say in case if an X company wants to adapt FOC as their business transaction, so what does the company has to do with the freight forwarders or with the customs and also the charges part as well. Kindly explain me how it operates in the real time scenario. Waiting for your knowledge transfer sir.

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