FCA Free carrier

FCA stands for “Free Carrier” and is a trade clause used in international commercial transactions. It defines the responsibilities and obligations of both the seller and the buyer in relation to the transportation and delivery of goods.
According to the rules of the International Chamber of Commerce (ICC), FCA is one of the so-called Incoterms (International Commercial Terms), which are recognized worldwide and regulate the rights and obligations of buyers and sellers in international commercial transactions.
Under the FCA clause, the seller bears the responsibility to deliver the goods to the agreed pick-up point specified in the sales contract. This can be, for example, the storage location of the seller or another named location. The seller must pack and mark the goods, provide the documents required for transportation and comply with export customs or other export formalities.

As soon as the goods are available at the agreed collection point, the costs and risk are transferred to the buyer. The buyer is then responsible for arranging transportation of the goods to the destination and for bearing the associated costs and risks. The buyer is also responsible for import duties and formalities.

FCA is particularly suitable for transportation by air freight, road transport or multipurpose transport. It is important to note that FCA does not include a provision for insurance coverage of the goods. Therefore, the seller and buyer should agree separately whether insurance should be taken out and who is responsible for it.

It is advisable, when using Incoterms such as FCA, to always enter into a written purchase agreement that specifies all the details of the transaction, including the exact delivery location, transportation arrangements, and the responsibilities of the parties.