Free Carrier (FCA) is an international trade term under the Incoterms rules. It means the seller delivers goods to a named location and hands them over to the carrier chosen by the buyer.
The goods are considered delivered once they are handed over to the carrier, and from that point on, the buyer is responsible for the shipment.
What Does FCA Include?
- Seller’s Responsibility:
- Prepares the goods and packaging
- Clears the goods for export
- Delivers the goods to the agreed place (e.g. port, warehouse, or terminal)
- Prepares the goods and packaging
- Buyer’s Responsibility:
- Chooses the carrier
- Handles transport from the handover point
- Deals with import duties and taxes
- Chooses the carrier
When is FCA Used?
FCA is often used in air, sea, rail, and road transport. It works well when the buyer wants more control over the main transport arrangements.
FCA vs Other Incoterms
- Compared to EXW (Ex Works): FCA includes more help from the seller (e.g. export clearance).
Compared to FOB (Free on Board): FCA is more flexible and works for all transport types, not just sea freight.