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FCA vs CPT (Incoterms 2020)

In both, the seller clears the goods for export and the risk passes when they are handed to the carrier in the country of shipment. The difference is the main carriage: under FCA the buyer books and pays it from the named place of delivery; under CPT the seller books and pays the transport to the named place of destination.

Side by side

FCA · Free CarrierCPT · Carriage Paid To
TransportAny modeAny mode
Delivery and risk pass to the buyer DifferentHanded to the buyer's carrier at the named placeHanded to the first carrier in the country of shipment
Main freight paid by DifferentBuyerSeller
InsuranceNot requiredNot required
Export clearanceSellerSeller
Import clearance and dutiesBuyerBuyer
Unloading at destinationBuyerBuyer

Where risk and costs pass from the seller to the buyer

FCA Free Carrier

Risk
Costs

CPT Carriage Paid To

Risk
Costs

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)

FCACPT
A1/B1 General obligationsProvide 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 deliveryDeliver 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.Deliver by handing the goods over to the carrier the seller has contracted, at the agreed point at the place of delivery, or procure goods so delivered.
A3/B3 Transfer of risksBears all risk until delivery.Bears all risk until the goods are handed to the first carrier, even though it pays freight to destination.
A4/B4 CarriageNo 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.Contract or procure carriage on usual terms, by a usual route and in the customary manner, from the place of delivery to the named place of destination; meet transport-related security requirements.
A6/B6 Delivery or transport documentProvide, 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.If customary or requested, provide at its cost the usual transport document for the agreed carriage. Where agreed or customary, it must let the buyer claim the goods at destination and sell them in transit; a negotiable document in several originals goes to the buyer as a full set.
A7/B7 Export and import clearanceCarry 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.Carry out and pay for export clearance. Where applicable, help the buyer, at its request, risk and cost, with documents and information for transit and import clearance.
A9/B9 Allocation of costsPay all costs until delivery, the usual proof of delivery and export clearance duties, taxes and charges.Pay all costs until delivery, the freight and other costs of the carriage contract including loading, any unloading and transit costs that the carriage contract puts on the seller, the transport document and export clearance.
A10/B10 NoticesGive the buyer sufficient notice that the goods have been delivered, or that the nominated carrier failed to take them in time.Notify the buyer that the goods have been delivered, and give any notice the buyer needs to receive them.

When to use each rule

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.

CPT

CPT suits containers, air freight and multimodal transport when the seller can get good freight rates but does not want to carry transit risk. It is the any-mode version of CFR.

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

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.

Where does risk pass under CPT?

When the seller hands the goods to the first carrier in the country of shipment, not at the destination named in the rule.

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