FCA ,Free Carrier, which is a trade term commonly used in international trade. This term is used to describe the mode of delivery of the goods, that is, the named free carrier delivers the goods to the buyer or his representative at the named place.
Buyer and seller obligations for Free Carrier
Seller’s obligations
1. Bear all the risks and expenses of the goods before they are handed over to the carrier for supervision
2. Responsible for handing over the goods conforming to the contract to the carrier designated by the buyer within the date and time limit specified in the contract, and sending a notice to the buyer to deliver the goods to the carrier.
3. Responsible for handling the export procedures of goods and obtaining export licenses or other approvals
4. Responsible for providing commercial invoices and other usual documents to prove that delivery obligations have been fulfilled
Buyer’s obligations
1. Bear all the risks and expenses of the goods after they are handed over to the carrier for supervision
2. Responsible for obtaining import licenses or other official approval documents, handling import declaration procedures, and paying related fees
3. Responsible for arranging transportation, and inform the other party of the name of the carrier, mode of transportation, and the place and real time of delivery to the carrier in the designated place
4. Apply for cargo transportation insurance and pay related expenses 5. Receive the goods, accept delivery documents, and pay for the goods
The difference between FCA and FOB
Mode of transport
FOB is only applicable to the mode of sea freight, while FCA is suitable for any mode of transportation.
Trading locations
The FOB mode of shipping is delivered at the port of shipment, and the FCA transportation needs to be delivered at the place specified in the contract.
Risk division boundary
The risk division of FOB buyers and sellers is on the side of the ship at the port of shipment, while FCA delivers at the designated place of delivery.
Shipping documents
FOB will only be a sea bill of lading, while the shipping bill of lading used by FCA depends on different modes of transportation.
Regulations on burden of loading and unloading charges
In the case of FOB chartering, in order to solve the burden of loading and unloading charges, there is a deformation of the trade term, while FCA does not need to produce a deformation of the trade term to solve the burden of loading and unloading charges.
The difference between FCA and DDP
Different meaning
DDP: The full name is “Delivered Duty Paid”, which means delivery after tax.
The whole process is “free carrier”, which means that the goods are delivered to the carrier.
Different fees
DDP: The cost of DDP includes handling fees, duties, taxes and other charges.
FCA’s fees include all duties, taxes and other charges.
Different delivery
DDP: When DDP is delivered, the seller must hand over the goods that have not been unloaded on the delivery vehicle to the buyer or other persons designated by the buyer at the designated destination on the agreed date or within the delivery period.
When delivering Free Carrier, the seller must deliver the goods to the carrier or other person designated by the buyer at the designated place of delivery, within the agreed delivery date or within the time limit, or by the seller in accordance with the selected carrier or other person.
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