Where delivery happens
If the named place is the seller's premises: when loaded onto the buyer's collecting vehicle. If another place (e.g. a forwarder's depot): when the goods arrive on the seller's vehicle, ready for unloading, at the buyer's carrier.
The seller
- Export clearance
- Loading at its own premises (if that is the named place)
- Delivery to the named place
The buyer
- Main carriage, insurance, import clearance, duty and GST/VAT
- Risk after delivery to the carrier
When risk passes
Passes when the goods are handed to the buyer's carrier at the named place.
When to use FCA
Most international sales where the buyer arranges freight, including containerised sea freight. Usually the better choice than EXW or FOB for containers.
Watch out
Name the place precisely (address, not just a city). Under the 2020 rules the parties can agree that the buyer's carrier issues an on-board bill of lading to the seller, which helps with letters of credit.
Example
FCA Dandenong South warehouse: the Australian exporter loads the buyer's truck and clears export; from there the buyer pays and carries the risk.
How it appears on the invoice
Write the three-letter code, the named place and the rules version, for example FCA Dandenong South VIC (Incoterms® 2020). The full name is not needed on the document. In Vendara Trade Documents you pick FCA – Free Carrier from the list and the invoice prints just FCA with your named place.
Frequently asked questions
What does FCA mean?
FCA stands for Free Carrier (Incoterms® 2020). The seller clears the goods for export and hands them to the carrier the buyer has nominated, at a named place.
Where does risk pass under FCA?
Passes when the goods are handed to the buyer's carrier at the named place.
Who pays import duty and GST under FCA?
The buyer pays import clearance, duty and import GST or VAT.
When should I use FCA?
Most international sales where the buyer arranges freight, including containerised sea freight. Usually the better choice than EXW or FOB for containers.