Free Carrier (FCA)

“Free Carrier” means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
Can be used for any transport mode, or where there is more than one transport mode.
A very flexible rule that is suitable for all situations where the buyer arranges the main carriage.

For example:

• Seller arranges pre-carriage from seller’s depot to the named place, which can be a terminal or transport hub, forwarder’s warehouse etc. Delivery and transfer of risk takes place when the truck or other vehicle arrives at this place, ready for unloading – in other words, the carrier is responsible for unloading the goods. (If there is more than one carrier, then risk transfers on delivery to the first carrier.)

• Where the named place is the seller’s premises, then the seller is responsible for loading the goods onto the truck etc. NB this is an important difference from Ex Works EXW

In all cases, the seller is responsible for export clearance; the buyer assumes all risks and costs after the goods have been delivered at the named place.

FCA is the rule of choice for containerised goods where the buyer arranges for the main carriage.

 

For more details regarding the updated 2020 terms, please speak with your nominated shipping company or refer to the International Chamber of Commerce.

There are two key changes in Incoterms ® 2020 compared to the last edition:

• DAT (Delivered at Terminal) is renamed Delivered at Place Unloaded (DPU)

• FCA (Free Carrier) now allows for Bills of Lading to be issued after loading

Other changes include:

• CIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid To) set out new standard insurance arrangements, but the level of insurance continues to be negotiable between buyer and seller.

• Where listed, cost allocation between buyer and seller is stated more precisely – one article lists all costs the seller and the buyer are responsible for.

• FCA (Free Carrier), DAP (Delivered at Place), DPU (Delivered at Place Unloaded) and DDP (Delivered Duty Paid) now take account of buyer and seller arranging their own transport rather than using a third party.

• Security-related obligations are now more prominent.

• “Explanatory Notes for Users” for each Incoterm® have replaced the 2010 edition’s Guidance Notes, and are designed to be easier for users.

• CIP now requires as default insurance coverage ICC A or equivalent. It was ICC C under Incoterms^® Required insurance coverage under CIF remains.