FCA

FCA (Free Carrier)

The term FCA, or "Free Carrier", is a widely used Incoterm in international trade. It stipulates that the seller fulfills their delivery obligations when the goods are handed over to the carrier designated by the buyer at an agreed location. This means that the seller is responsible for costs and risks up to this specific point.

Seller's Responsibilities

• Packaging and labeling: The seller must ensure that the goods are properly packaged and labeled for transport.
• Export customs formalities: They are also responsible for completing export customs formalities.

Buyer's Responsibilities

• Main transport: Once the goods are handed over to the carrier, the buyer assumes the costs and risks associated with the main transport.
• Import customs formalities: The buyer must handle import customs formalities and pay customs duties.

Practical Tips

• Choice of delivery location: It is crucial to clearly define the delivery location in the contract to avoid any ambiguity.
• Insurance: Although not mandatory, it is advisable for the buyer to take out insurance to cover risks after the handover to the carrier.

In conclusion, the FCA term offers considerable flexibility to contracting parties but requires clear communication and mutual understanding of responsibilities to avoid disputes.