What is FCA – Free Carrier (named place of delivery)?

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What is FCA? 

Under the Free Carrier or  FCA Incoterms, the seller arranges most or all of the export operations in the origin. The buyer, on the other hand, arranges all of the operations in the destination.  

FCA is a flexible Incoterm, and can be used for intermodal transportation, as well as any other mode. It’s a suitable solution for all cases where the buyer must arrange the main carriage of the shipment.

In many cases, this Incoterm has replaced FOB for a more common use.  

According to the FCA Incoterms, what is each party responsible for? 

Under FCA, the seller is responsible for export clearance, trucking within the export country, and delivery of goods at the named place of delivery. The buyer is responsible for unloading the goods from the seller’s transport.

According to the FCA Incoterms, when is risk transferred to the buyer from the seller? 

Under the FCA Incoterms, the seller is liable for all transportation tasks in their / export country until the goods are delivered to the carrier at the named place, which is normally the terminal or a warehouse. Unless this named place is the terminal, the buyer will be responsible for some delivery operations in the export country. This means that the risk passes to the buyer at the named place of delivery before importation. 

When is FCA used? 

FCA may be used for any mode of transport, especially for containerized freight. It can also be used for transport via air, ocean, and railway. 

   

      

Tags: incoterms

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