FCAFree Carrier
FCA (Free Carrier) means the seller clears the goods for export and hands them to the carrier nominated by the buyer at a named place; risk passes on handover, and the buyer arranges and pays the main carriage. It works for any mode, including containers.
Where FCA hands over
The orange marker is where risk passes to the buyer. Blue bars are the seller's, yellow the buyer's.
FCA at a glance
- Transport
- Any modeIncluding containers and multimodal
- Risk passes
- Handed to carrier
- Main carriage
- Buyer paysand nominates the carrier
- Insurance
- No obligationthe party at risk usually insures
- Delivery point
- At the seller's premises: when loaded on the buyer's collecting vehicle. Anywhere else: when the goods, still on the seller's vehicle and ready for unloading, are placed at the carrier's disposal.
| Job | Who |
|---|---|
| Export clearance | Seller |
| Loading at origin | Seller if at seller's premises |
| Main carriage | Buyer |
| Insurance | No obligation |
| Unloading at destination | Buyer |
| Import clearance and duties | Buyer |
When to use FCA
Use FCA when
- Containers, air freight, road and rail
- The buyer controls and pays the main freight
- You can clear export and hand over at a terminal or your door
Avoid FCA when
- The named place is vague, such as a whole city or country
- A bank needs an on-board bill of lading and the 2020 option is not agreed
- The buyer cannot nominate a carrier in time
Common FCA mistakes
‘FCA China’ is not enough. Name the exact address or terminal, because it decides who loads, who unloads and where risk passes.
Since 2020 the parties can agree that the buyer instructs its carrier to issue an on-board bill of lading to the seller, which helps when a bank requires one.
Container goods are handed over at a terminal days before loading. FCA matches that; FOB leaves the seller carrying risk for cargo it no longer controls.
FCA beside its neighbours
FOB is for goods loaded directly onto a ship. For containerised cargo FCA is the rule designed for the job. Read about FOB.
All eleven rules
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). CartonMath is not affiliated with or endorsed by the ICC. This is a plain-language summary; the full rules are published by the ICC and the contract wording governs.
Common questions
What does FCA mean?
FCA (Free Carrier) means the seller clears the goods for export and hands them to the carrier nominated by the buyer at a named place; risk passes on handover, and the buyer arranges and pays the main carriage. It works for any mode, including containers.
When does risk pass under FCA?
At the seller's premises: when loaded on the buyer's collecting vehicle. Anywhere else: when the goods, still on the seller's vehicle and ready for unloading, are placed at the carrier's disposal.
Who pays the main freight under FCA?
The buyer arranges and pays the main carriage.
Who pays import duties under FCA?
The buyer clears the goods for import and pays any duties and taxes under FCA.
Can FCA be used for container shipments?
Yes. FCA works for any mode of transport, including containers and multimodal shipments.