FCA: Free Carrier (Incoterms® 2020)
Under FCA the seller clears the goods for export and hands them to the carrier the buyer has chosen, at a named place. Risk passes at that handover.
Quick facts
How to write it
FCA + the named place of delivery + Incoterms 2020, for example: FCA Seller's factory, Suwon, Korea Incoterms 2020 or FCA Busan New Port container yard Incoterms 2020.
What the seller does
- Clears the goods for export and pays any export duties.
- Delivers to the buyer's carrier at the named place on the agreed date.
- Loads the goods if the named place is the seller's own premises.
- Provides proof of delivery, and an on-board bill of lading if the parties agreed to it.
What the buyer does
- Nominates the carrier and tells the seller the pickup details.
- Books and pays the main transport from the named place.
- Takes the risk from the moment of delivery and insures if it wishes.
- Clears the goods for import and pays duties and taxes.
When to use it
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.
Common mistakes
- A vague named place. If it is the seller's premises the seller loads; if it is anywhere else the seller only brings the goods there on its own vehicle, ready for unloading. Name the place precisely.
- Forgetting the bill of lading clause when the sale is paid by letter of credit. Incoterms 2020 lets the parties agree that the buyer's carrier issues an on-board bill of lading to the seller.
- Assuming FCA is only for air or trucks. It is often the best choice for sea containers.
FCA vs FOB
With FOB, risk passes only when the goods are on board the ship. With containers the seller hands them over at the terminal days earlier and can no longer protect them, so FCA, where risk passes at the handover, fits container shipping better.
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.
All 11 Incoterms 2020 rules
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.
Who loads the goods under FCA?
It depends on the named place. At the seller's premises, the seller loads the goods onto the buyer's vehicle. At any other place, the seller brings the goods there on its own vehicle, and the buyer's carrier unloads them.