At a Glance
- Suitable for
- All modes of transport
- Transfer of risk
- On handover to the named carrier
- Seller pays
- Export, transport to the place of handover
- Buyer pays
- Freight from handover, import, customs
How FCA works
Under FCA the seller bears export clearance and export formalities and the transport costs up to the named place of handover (the seller's warehouse, a terminal or an airport, for example). From handover to the carrier, the buyer bears all further costs, insurance and risks. The place of handover can be agreed freely – which makes FCA very flexible.
FCA vs EXW
Under EXW the buyer has to collect the goods from the seller themselves and also handles export clearance. Under FCA the seller takes on the export formalities – which in many countries is legally possible only through the local exporter anyway. FCA is therefore more workable for the buyer and more common in international trade.
FCA and container loads
The ICC recommends FCA rather than FOB for container loads in sea freight. The transfer of risk under FOB – as the goods cross the ship's rail – does not fit modern container operations, where goods sit in the terminal long before shipment. Under FCA the transfer of risk can be defined at the container terminal.
