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Incoterms : FCA - Free Carrier

By Splatty • Jan 30th, 2006 • Category: Incoterms 2000

    FCA

FCA - Free Carrier - named place. It is important to note that this incoterm can be used for any mode of transportation.

While it is my opinion that no single incoterm is better than another, this particular incoterm allows for a great deal of flexibility as it can be used for either airfreight or seafreight shipments. In order for this incoterm to be used correctly the shipper or consignee must state a named place, i.e. Free Carrier - freight forwarders facility Los Angeles, California. Free Carrier can also technically be stated FCA - shipper’s facility. In this scenario the only difference between FCA and EXW would be that the shipper would be responsible for loading the cargo onto a truck at the dock.

Under the terms of FCA, the seller must deliver the goods to a carrier nominated by the buyer at a specified named place. The seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point.

Payment Responsibilities Outlined Below:

Seller’s Responsibilities
1. Warehouse storage at point of origin
2. Warehouse labor at point of origin
3. Export packing
4. Loading at point of origin

Buyer’s Responsibilities
1. Inland freight
2. Port of receiving charges
3. Forwarder’s fee
4. Loading on ocean carrier/airline
5. Ocean/air freight charges
6. Charges in foreign airport/port
7. Customs duties and taxes abroad
8. Delivery charges to final destination

This interpretation is provided as a guide only.

Incoterms are published by the International Chamber of Commerce and are available on their website and official publication “Incoterms 2000″. For a complete and official overview please refer to the ICC’s publication.

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Related Posts:
Incoterms : More Definitions Coming Soon!!
Incoterms 2000 - Part 2
Incoterms Explained : simply, we hope
Incoterms : FOB - Free On Board

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7 Responses »

  1. Ashok Krishnana on June 15th, 2006 at 9:31 pm:

    nice description.

    Please provide the same for remaining incoterms.

    thanks

    -Merv Hughes

  2. 3plwire on June 17th, 2006 at 12:15 am:

    yes, I agree, we need to do more of these. We have been far too lax in posting on Incoterms. We will get right on it and take care of the rest next week. Well, I should say we will do our best :-)) Little kids + Logistics careers don’t make for a lot of free time :-)))

  3. Ina on July 7th, 2008 at 11:42 am:

    Very clear definition by sperating responsibilites of sellers and buyers.
    Would like to add one more point of responsibilities for both parties to this Incoterm:
    Seller:
    Report Export
    Buyer:
    Declare Import

  4. Jz on August 4th, 2008 at 2:28 am:

    i m new in this so thanks for the person who write the info..
    its very easy to understand..

  5. Jz on August 4th, 2008 at 2:29 am:

    i couldnt find the FAs, can anyone help me with it?

  6. 3plwire on August 4th, 2008 at 7:18 am:

    Hi Jz,

    Here is the link to FAS.

    http://www.3plwire.com/2006/01/06/incoterms-fas-free-alongside-ship/

  7. jz on August 18th, 2008 at 12:05 am:

    hihi,,,
    thank you very much for the link. it helps me alot.
    i have a question for u, i newin this logistics company but i dont really know bout logistics..
    do u mind to tell me wat should i learn or read other than this incoterms..???
    thanks

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