Incoterms® 2020Modes: Any
FCA - Free Carrier
FCA (Free Carrier) is one of the 11 rules published by the ICC in Incoterms® 2020. Risk passes named place of delivery to carrier. Insurance is not an obligation under FCA - the buyer decides.
Good for LC
Risk transfer point
Named place of delivery to carrier
Who does what under FCA
| Obligation | Party |
|---|---|
| Export Packaging | Seller |
| Inland Transport (Origin) | Seller |
| Export Clearance | Seller |
| Loading on Vessel | See note |
| Main Carriage (Freight) | Buyer |
| Insurance | Buyer |
| Destination Charges | Buyer |
| Import Clearance | Buyer |
| Import Duty | Buyer |
Watch outs
- Recommended for containerised cargo. Use FCA instead of FOB.
- Incoterms 2020 new: Parties may agree buyer instructs carrier to issue on-board B/L to seller - solves LC presentation problem.
Under a letter of credit
Include: "Buyer instructs carrier to issue on-board B/L to seller per Incoterms 2020." Required for LC presentations needing on-board B/L.