What is FCA?
FCA is a Free Carrier (named place of delivery), which means that the seller must clear the goods for export and deliver them at a named place. The named place can be the seller’s facility, or the buyer’s forwarder or carrier.
In many cases, this Incoterm has replaced FOB for common use. However, under the FCA, the risk passes from the seller to the buyer at the named place. If delivery is agreed to be at any location under the seller’s control, the seller must take responsibility for loading onto the buyer’s carrier.
When is FCA used?
FCA may be used during any mode of transport, including multimodal transport, transport via air, ocean, and railway. “Carrier” means any person who, in a contract of carriage undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of some of those. If the buyer tells the seller to deliver the cargo to a person, (ex. A freight forwarder, who isn’t a ‘carrier,’) the seller is deemed to have fulfilled his obligation to deliver the goods when they are in the custody of that person.
When does the seller’s obligation end according to FCA?
If delivery occurs at any other place, the seller is considered to have fulfilled his or her obligations, once the shipment has arrived at the named place. The buyer would be responsible for both, unloading the goods, and loading them onto the next carrier.