EXW vs FCA (Incoterms 2020)
Under FCA at the seller's premises, the seller also loads the goods onto the buyer's truck and clears them for export. That small difference removes the two biggest problems with EXW, which is why the ICC points international traders towards FCA.
Side by side
| EXW · Ex Works | FCA · Free Carrier | |
|---|---|---|
| Transport | Any mode | Any mode |
| Delivery and risk pass to the buyer Different | At the seller's premises, goods made available, not loaded | Handed to the buyer's carrier at the named place |
| Main freight paid by | Buyer | Buyer |
| Insurance | Not required | Not required |
| Export clearance Different | Buyer | Seller |
| Import clearance and duties | Buyer | Buyer |
| Unloading at destination | Buyer | Buyer |
Where risk and costs pass from the seller to the buyer
SellerBuyer
Origin → Main carriage → Destination. Simplified diagram: the exact point is the named place written after the rule. The costs line shows who pays the main carriage and, under DDP, the import duties and taxes.
Seller's obligations compared (A1–A10)
| EXW | FCA | |
|---|---|---|
| A1/B1 General obligations | Provide the goods and the commercial invoice as the contract requires, plus any other proof of conformity it asks for. Documents may be paper or electronic if agreed or customary. | Provide the goods and the commercial invoice as the contract requires, plus any other proof of conformity it asks for. Documents may be paper or electronic if agreed or customary. |
| A2/B2 Delivery and taking delivery | Place the goods at the buyer's disposal at the agreed point, if any, at the named place, not loaded on any collecting vehicle, on the agreed date or within the agreed period. | Deliver to the carrier or other person nominated by the buyer at the named place: if that is the seller's premises, by loading the goods on the buyer's vehicle; anywhere else, by placing them, on the seller's vehicle and ready for unloading, at the carrier's disposal. |
| A3/B3 Transfer of risks | Bears all risk of loss or damage until the goods are made available. | Bears all risk until delivery. |
| A4/B4 Carriage | No obligation to arrange transport. At the buyer's request, risk and cost, give any information the buyer needs to arrange it, including security requirements. | No obligation to contract carriage; if agreed, the seller contracts it on usual terms at the buyer's risk and cost. Meets transport-related security requirements up to delivery. |
| A6/B6 Delivery or transport document | No obligation to the buyer. | Provide, at its cost, the usual proof of delivery and help the buyer obtain a transport document. If the buyer's carrier issued an on-board bill of lading to the seller, pass it on to the buyer, often through the banks under a letter of credit. |
| A7/B7 Export and import clearance | No export clearance duty. Where applicable, help the buyer, at its request, risk and cost, with documents and information for export, transit and import clearance. | Carry out and pay for export clearance: export licence, export security clearance, pre-shipment inspection and other official authorisations. Where applicable, help the buyer, at its request, risk and cost, with documents and information for transit and import clearance. |
| A9/B9 Allocation of costs | Pay all costs until the goods are made available, except those the buyer pays. | Pay all costs until delivery, the usual proof of delivery and export clearance duties, taxes and charges. |
| A10/B10 Notices | Give the buyer any notice it needs to take delivery. | Give the buyer sufficient notice that the goods have been delivered, or that the nominated carrier failed to take them in time. |
When to use each rule
EXW
EXW suits domestic sales, or buyers who have their own freight forwarder and customs agent in the seller's country. For most international sales FCA is the safer choice, because the seller then clears export, which a foreign buyer often cannot do.
FCA
FCA works for every mode of transport and is the ICC's recommended rule for container shipments, where goods are handed over at a terminal before loading. It gives the buyer control of the freight while leaving export formalities with the seller, who knows them best.
Compare other rules
A plain-language summary of Incoterms® 2020 for everyday use. The full rules are published by the International Chamber of Commerce (ICC), and your contract wording decides. Incoterms® is a registered trademark of the ICC.
Guides on this topic
Common questions
Who pays for loading under EXW?
The buyer. The seller is not obliged to load. If the seller's staff do load the truck, the risk of damage during loading stays with the buyer unless the contract says otherwise.
Can FCA be used for sea freight?
Yes. FCA can be used for any mode of transport, including sea. It is the rule the ICC recommends for containerised sea freight instead of FOB.
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