FCA Incoterms 2020 - Rules and regulations

Risk transfer: The seller's obligations end when the goods have been placed at the agreed upon delivery spot

Costs: The seller is responsible for all costs up until the agreed delivery spot, including loading of the first transport.

Responsibility: The buyer is responsible for the contract of carriage and needs to (when required) to clear the goods for export.

New for FCA incoterms 2020: The carrier may receive instructions from the buyer to issue an On-Board Bill of Lading which the seller needs to present to the buyer.

Contact Adnavem for matters regarding the FCA Incoterms.

Important to know about FCA shipping obligations

It’s the buyer’s responsibility to organise the transportation and pay for all costs after the agreed delivery spot. The seller needs to receive the necessary information from the buyer to be able to clear the goods for export and perform the security clearance. 

FCA (Free Carrier) belongs to Incoterms Group 1 and can therefore be used for all transportation modes. Eventual insurance will be handled by the buyer.

What’s the difference between FCA and EXW?

The Incoterms FCA and EXW look very similar on paper making it hard to sometimes distinguish them from each other.

Ex Works (EXW) is one of the most fundamental Incoterms. The seller's obligations include making the goods available at their factory/facility for the buyer to be able to pick them up. In other words, this means that all of the costs and risks lie with the buyer even before the goods have been loaded and entered the transportation chain. 

The FCA delivery terms, also called Free Carrier, is essentially only one step further. Instead of only being responsible for making the goods available at their location, the seller is also responsible for the costs and risks up until the goods have been delivered to the first carrier. This means that the seller is responsible for the export transportation to the carrier as well as the customs clearance of the goods, while the buyer is responsible for the remaining steps, costs and risks.

To summarise: risk and responsibility transfer with EXW happens on agreed upon spot before any type of loading or transport has begun. Using FCA shipping, the seller is responsible for the whole process, costs and risks up until the first loading has been performed.

Read more about the latest updates for all Incoterms 2020.

Benefits of booking on Adnavem

  • You get full transparency.

  • You choose the suppliers that suit you in your transport chain.

  • You know who manages your goods and when. You can easily see what you pay and to whom.

  • You get full control.

  • You can easily see when your containers leave or come to port.

  • You can optimize your transport chain over time with the help of the data and knowledge you collect.

  • You pay less as you do not need any intermediaries, you do not pay for someone else to administer your transport. You simply pay directly to the parties who actually handle your goods.

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