What is Free Carrier (FCA Incoterms)?

Free Carrier (FCA) meaning

Under Incoterms rules, Free Carrier (FCA) refers to a shipping arrangement where the delivers goods to a specified location.
If the delivery location is the seller’s place of business, the seller loads the goods onto the buyer’s chosen mode of transportation. The “carrier” can be a transportation company or a freight forwarder chosen by the buyer.
If the delivery location is elsewhere, the seller transports the goods to that location and prepares them for unloading from the seller’s vehicle.
The seller remains responsible for delivering the goods until they reach the designated "carrier." Opting for FCA holds the seller responsible for handling export procedures and loading them onto the buyer's chosen mode of transportation.

The main responsibilities of buyers and sellers under FCA

Under the Free Carrier (FCA) incoterm, both buyers and sellers have specific responsibilities that define their roles in the shipping process.

Seller responsibilities under FCA:	Buyer responsibilities under FCA:
Ensure the cargo meets specific country requirements and is suitable for export. Payment for loading the cargo onto the initial carrier for transportation. Cover the costs of transporting the goods from the seller’s location to the designated export port or location. Handle export processes, including payments and procedures for customs duties, taxes, examinations, and clearances. The seller’s responsibility ends when the goods are handed over to the carrier chosen by the buyer, marking the transfer of risk.	Payment of compliance costs when the cargo loads onto the designated vessel at shipping terminal. Cover the costs of loading the cargo onto the carriage as requested by the shipping line. Payment of freight charges for transporting the cargo from the original port to the destination port. Ensure the cargo is insured during transit. Payment of terminal charges upon the cargo's arrival at the destination port, including unloading and transfer procedures. Costs for transporting the cargo from the destination port to the buyer's designated delivery location. Financial and procedural aspects of importing goods, covering duties, taxes, and customs clearance. The buyer assumes all risks and costs from the point the goods are handed over to the carrier.

Seller responsibilities under FCA:

Buyer responsibilities under FCA:

Ensure the cargo meets specific country requirements and is suitable for export.
Payment for loading the cargo onto the initial carrier for transportation.
Cover the costs of transporting the goods from the seller’s location to the designated export port or location.
Handle export processes, including payments and procedures for customs duties, taxes, examinations, and clearances.
The seller’s responsibility ends when the goods are handed over to the carrier chosen by the buyer, marking the transfer of risk.

Payment of compliance costs when the cargo loads onto the designated vessel at shipping terminal.
Cover the costs of loading the cargo onto the carriage as requested by the shipping line.
Payment of freight charges for transporting the cargo from the original port to the destination port.
Ensure the cargo is insured during transit.
Payment of terminal charges upon the cargo's arrival at the destination port, including unloading and transfer procedures.
Costs for transporting the cargo from the destination port to the buyer's designated delivery location.
Financial and procedural aspects of importing goods, covering duties, taxes, and customs clearance.
The buyer assumes all risks and costs from the point the goods are handed over to the carrier.

What is the difference between Carriage paid to (CPT) & Free Carrier (FCA) ?

While all three Incoterms involve the seller being responsible for delivering the goods, the point at which risk transfers and the specific responsibilities differ among CPT and FCA .

CPT (Carriage Paid To):
- The seller pays for the transportation of the goods to the agreed upon destination.
- Risk transfers from the seller to the buyer when the goods are handed over to the first carrier.
FCA (Free Carrier):
- The seller’s responsibility ends when the goods are handed over to the carrier or the buyer’s representative at the agreed location.
- The buyer then takes over responsibility for the main carriage and associated costs.

Understanding these differences helps you choose the appropriate incoterm based on your shipping needs and the nature of the transactions.

Related Terms

Carriage paid to (CPT)

Freight Forwarder

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