x Do you want to understand the concept of FCA conditions in Incoterms 2010?
x Do you want to know about the obligations of the seller and buyer in FCA under Incoterms 2010?
x You don't know how to apply FCA conditions effectively and need to find the best shipping company?
Information related to the concept of what FCA Incoterms 2010 terms are , clearly defining the obligations for the seller and the buyer, along with how to apply FCA properly and effectively will be most fully conveyed by Proship. . If you are directly involved in FCA conditions, you can refer and read to know exactly what you need to do.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
What are FCA conditions?
FCA (Free Carrier) terms – “Delivery to carrier”, meaning the seller's responsibility is to deliver the goods cleared for export to the buyer at the seller's facility or at an agreed place in the seller's country . The seller shall terminate his liability upon delivery of the goods to the first carrier engaged by the buyer.
The buyer must hire a domestic vehicle to get to the designated location in the seller's country to pick up the goods. Then transport to the port. If traveling by sea, transport to the seaport and if traveling by air, transport to the airport.
The seller completes loading of goods onto domestic transport vehicles as well as completing export customs clearance procedures. The buyer is responsible for booking international shipping charges from the seller's country to the buyer's country.
Buyers and sellers should clearly stipulate the designated delivery location because the buyer bears all costs and risks related to receiving goods from the designated point to their warehouse.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
What obligations do sellers and buyers have under FCA Incoterms 2010?
According to the provisions of FCA conditions, the seller and the buyer have the following obligations:
Seller obligations:
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- Supply the goods in accordance with the contract and deliver them at the conventional place (specified in the contract) in the care of the public transporter appointed by the buyer, if there is no clear location. Delivery will be made at the location previously notified to the carrier or at a familiar location
- Completing export customs clearance (providing the buyer or the carrier designated by the buyer with an export license, ensuring goods security. Paying export taxes and fees if any...)
- Provide proof of delivery to the carrier
- Timely notification to buyers
- Required documents: commercial invoice, common documents evidencing delivery to the carrier, export documents.
Buyer obligations:
- Pay for goods
- Sign a transport contract and pay the freight. In the case of asking the seller to help, the buyer must bear all costs
- Timely appoint a carrier, notify the seller and the carrier when the delivery deadline is due
- Receive goods and bear all costs of receiving goods at the specified place
- Check the goods at the place of receipt (9cos can ask the carrier to help)
- Bear all risks and losses of the goods from the time the goods are delivered to the designated carrier (the carrier with whom the buyer or seller signs a transportation contract).
- Make necessary permits and procedures to bring goods in transit through countries during transportation (if any).
Responsibilities for loading and unloading goods:
Whether delivered at the seller's factory: FCA (Seller's Warehouse) or delivered at Tan Son Nhat airport FCA (Tan Son Nhat Airport) or delivered at seaport: FCA (Cat Lai Port), then:
- The seller bears the costs + risks of loading the goods onto the means of transport at the seller's factory
- Buyer bears costs + Risk of loading goods onto plane/ship (paying THC fee at the beginning of loading).
Both buyers/sellers must pay close attention to this item while offering/negotiating the selling price because there are many cases where both sides confuse this item. Because normally the airline/shipping company will quote flight/ship fares according to the THC fee which side pays. The seller must remind and reason closely so that the buyer understands and bears this fee from the beginning. If there is another agreement, it must be clearly stated before signing the contract:
- Buyer bears costs + Risk of unloading goods from plane/ship (pay THC fee for unloading)
- The buyer bears the costs + Risk of unloading the goods from the means of transport at the buyer's factory.
How to effectively apply FCA Incoterms 2010 conditions?
FCA Incoterm 2010 can be used effectively in the following way:
FCA condition is an Incoterm condition suitable for many modes of transport, including multimodal transport, so it has very high applicability. In addition, FCA allows shoppers to be more proactive in specifying the appropriate carrier.
Unlike EXW, when using FCA, buyers do not need to spend much time clearing goods before exporting. This is very beneficial for buyers in helping them minimize some unwanted costs - When having to outsource services specializing in export customs clearance, in case they are not familiar with the process in the exporting country.
FCA conditions need to be used effectively and appropriately to bring many benefits to sellers and buyers.
FCA is also recommended higher than FOB because it essentially helps minimize risks and disputes that may occur for both buyers and sellers while transferring goods. However, when using FCA terms, the buyer must have the strength to find a suitable carrier as well as experience in international purchasing, because the seller's responsibility for the goods ends very quickly after upon delivery to the carrier.
FCA is suitable for units with factories and facilities abroad; The parent company purchases goods from the subsidiary and vice versa. These transnational companies have had long-term investments in Vietnam and understand the policies. Of course, they must have close relationships with shipping lines located in Vietnam.
Proship.vn – Sea freight shipping unit according to Incoterm 2010 standard FCA conditions
Proship provides customers with a PRESTIGE QUALITY domestic sea freight service We are confident in bringing you the best perfect service experience ever.
Our domestic sea freight shipping service with competitive prices provides optimal shipping solutions, helping domestic companies feel secure when entrusting all their assets.
Proship commits to a number of terms regarding customer benefits, meeting FCA Incoterms 2010 conditions such as:
- The most competitive rates on the market
- Fast and simple procedure
- Transparent goods delivery route
- Delivery to your door, on time as agreed
- Have clear, detailed documents proving receipt of goods, etc. for the convenience of the seller and buyer.
Proship.vn is currently one of the reputable shipping businesses receiving trust from partners and businesses.
What's special about Proship's sea freight shipping?
- Low cost: With Proship, competitive prices along with the best after-sales services for customers are always the top priority. In addition, we also base on market prices to set the best price, encouraging many customers to choose.
- Transporting a variety of goods: Proship's sea transport service is capable of transporting many different types of goods with no restrictions on the size and quantity of packages.
- Large, long-distance transport capacity: Proship's sea transport services can meet the needs of long-distance transport of goods in large quantities, in large quantities, etc.
- North-South retail cargo transportation at the best price: Proship's North-South retail cargo shipping service by sea is also cheap and reputable, combined with convenient warehouses to create dynamism and flexibility.
- Safety: The risk rate of collisions or accidents during sea transport is relatively low, so goods are always guaranteed to be safe, with little loss or damage.
the contents related to FCA conditions? The regulations in FCA terms and how to use them effectively according to Incoterm 2010 terms have been shared wholeheartedly by Proship, sellers and buyers in freight forwarding can study for further reference. And when you need to find a sea freight unit or other economical transportation methods, please contact us via hotline 0909 344 247 to receive advice and support.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
