FCA (Free Carrier): Understanding the Responsibilities of Buyers and Sellers in International Trade
FCA, or Free Carrier, is one of the 11 Incoterms recognized by the International Chamber of Commerce (ICC). Incoterms are internationally recognized trade terms that define the obligations of buyers and sellers in a transaction, such as the delivery of goods, transportation, and payment of duties, taxes, and fees. In this blog, we will explore the meaning of FCA and what it entails for buyers and sellers in international trade.
Under FCA, the seller is responsible for making the goods available at their premises and for loading the goods onto the shipping vehicle designated by the buyer. This means that the seller is responsible for the cost of preparing the goods for shipment and for any necessary loading equipment or labor. The buyer, on the other hand, is responsible for the transportation of the goods from the seller’s premises to the final destination, including the cost of transportation, insurance, and customs clearance.
The delivery of the goods under FCA is considered complete when the goods are loaded onto the shipping vehicle, and the risk of loss or damage to the goods transfers from the seller to the buyer at that point. It is important to note that the delivery point specified in the FCA agreement should be clear and precise to avoid misunderstandings or disputes between the parties.
In conclusion, FCA is a useful Incoterm for buyers and sellers who want to ensure a clear and efficient transaction in international trade. By specifying the responsibilities of both parties, FCA can help to minimize the risk of disputes and ensure that both parties are aware of their obligations. However, it is important to choose the right Incoterm for a transaction, as each Incoterm has its own specific definition and set of obligations. By doing so, buyers and sellers can ensure a smooth and successful transaction that meets both their needs and expectations.