FCA (Free Carrier) is an Incoterm that is commonly used in international trade to signify that the seller is responsible for delivering the goods to a named destination or sellers premise, as outlined by the buyer. From here, it is transferred to the shipping carrier by the buyer. The term "free" refers to the sellers obligation (or the buyers lack of obligation) to manage the transfer of goods to the named place.
Under FCA Incoterms, the seller is responsible for export clearance and delivery of goods to the carrier at the named place of delivery. The sellers obligations include delivering the goods, commercial invoice, and documentation, export packaging and marking, export licenses and customs formalities, pre-carriage to terminal, and proof of delivery. The buyers obligations include payment for goods at the agreed-upon price, unloading from arriving means of transportation, loading charges, main carriage, and discharge and onward carriage.
FCA can be used for any form of transport, such as air freight, sea freight, road freight, and rail freight. It provides the buyer with flexibility, as they can arrange carriage, frequently at a better price than what their seller might quote. While the buyer assumes all risks and responsibilities once the goods reach the point of export, FCA enables the buyer to take over after the cargo has been exported.
FCA is an Incoterm that works for all modes of transport, including LCL (Less than Container Load), FCL, and air. It is suitable for containerized ocean shipments, and the point at which the seller is delivering the goods to the buyer must be named.
