FCA Incoterm

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What is the FCA Incoterm

The FCA Incoterm or “Free Carrier” states that the seller must deliver the goods, ready for export, to the buyer’s chosen carrier at an agreed-upon location. This location can be a particular port or a carriers hub. Under the FCA Incoterm, the seller is responsible for all costs and risks until the goods are loaded onto the agreed-upon carrier. After this point, the buyer becomes responsible for the costs and risks involved with delivery of the goods.

In summary, the seller must deliver the goods cleared for export to the carriers location specified by the buyer in the sales contract.

The FCA Incoterm is versatile and can be used regardless of the mode of transport.

Seller’s obligations under the FCA Incoterm

  • Delivery of goods and documents required
  • Packaging and wrapping
  • Inland transportation in the country of origin
  • Customs at origin
  • Exit charge

Buyer’s obligation under the FCA Incoterm

  • Cost of the goods
  • International freight
  • Arrival expenditures
  • Customs upon arrival
  • Inland transportation in the destination country
  • Payment of fees