What are FCA conditions? Find out the detailed regulations in FCA conditions

x Is your business interested and wants to learn about FCA conditions and FCA regulations in Incoterms?
x What do you need to grasp the content included in the FCA?
x Do you want to know what advantages FCA conditions bring and whether there are any disadvantages?

At Proship.vn, we will use the following article to clarify the concept of FCA, the detailed regulations on what FCA conditions are, and what role it plays. Besides, there are a number of advantages given to prove that FCA is superior to other conditions of Incoterms 2020.

What are FCA conditions?

What is FCA? FCA (Free Carrier) is one of the important terms in Incoterms 2020. So in short, what is FCA terms?

FCA (Free Carrier) is an international trade condition in group F of Incoterms 2020, where the seller delivers goods cleared for export to the buyer at the agreed location. Responsibility and risk pass from the seller to the buyer when the goods are delivered to the carrier nominated by the buyer.

What is the content of FCA conditions?

What is the content of FCA and what does it include? The answer is:

Mode of transport

FCA conditions apply to road transport, air transport, sea transport, etc.

Place of delivery

Delivery to the carrier means the goods are delivered to the buyer via: The delivery location is the seller's premises; The delivery location is not the seller's premises.

Risk transfer

The delivery point in FCA terms is not only the point of delivery but also the point that determines the transfer of risk from the seller to the buyer. Costs and risks associated with the goods are the responsibility of the buyer.

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Import-export customs clearance obligations

Under FCA terms, the seller will carry out customs clearance procedures for export. However, the seller is not responsible for import customs clearance, customs clearance of goods when passing through a third country, paying import taxes or costs related to import customs procedures.

Bill of lading with On-board stamp in FCA sales

Buying and selling under FCA terms, there may be a case where the seller needs a bill of lading with the "On-board" mark even though there is no seaport in the receiving city. In Incoterms 2020, FCA regulates allowing the buyer to appoint a carrier to issue an “On-board” bill of lading to the seller.

The regulations in FCA Incoterms 2020 are the most detailed

What FCA conditions are has been explained and the regulations on the obligations and responsibilities of the seller and the buyer are also noted in the following table:

OBLIGATIONS	SELLER'S OBLIGATIONS	BUYER'S OBLIGATIONS
General obligations	The seller must deliver the goods, commercial invoice and documents	The buyer must pay for the goods as contractually agreed.
Delivery	Delivery by placing the order at the agreed place on time and loading it onto the transport vehicle Or transport the goods to the agreed destination without unloading the goods from the seller's means of transport If no notice of time is given, delivery shall be made at the time the goods are loaded or at the discretion of the carrier.	The buyer picks up the goods from the location at the agreed time.
Risk	Bear all risks until completion of the order at the agreed place and time.	All risks from the time the goods are delivered or the end of the delivery agreement period. If the buyer does not designate a carrier, or if the carrier does not accept the goods, the risk is with the buyer.
Transport	The seller has no obligation to sign and pay for the transportation contract. The seller must sign a shipping contract with the carrier if agreed upon in the contract.	Sign and pay all costs for the contract with the shipping company.
Insurance	The seller is not obliged to purchase goods insurance.	The buyer has no obligation to insure the goods.
Delivery and shipping documents	Proof of delivery and shipping documents if the seller signs a shipping contract.	Check and confirm any proof of delivery.
Customs clearance for export and import	Do customs procedures and pay fees for export clearance. Support for import customs clearance.	Export customs clearance support. Import customs clearance and procedures.
Control	The seller controls the quantity, weight, brand and packaging of goods according to standards.	No obligations.
Cost obligations	The seller bears all costs to transport the goods until delivery at the agreed location, including: Proof of delivery fee Costs for applying for export licenses or other certificates Export taxes and fees Fees arise due to tariff or non-tariff barriers Fee for preparing and delivering documents to the buyer All costs incurred before the buyer receives the goods at the location and time stated in the contract All costs of controlling goods such as measuring, measuring, and checking quality Packaging and labeling fees Cost of shipping goods to the agreed location if that location is not the seller's warehouse The cost of loading goods onto the buyer's means of transport if the goods are delivered at the seller's warehouse.	The buyer bears all costs from the time of receipt of goods at the agreed point: Payment of goods according to contract Import taxes and transit fees, if any Shipping and transit fees from the point of receipt to the destination Fee for unloading goods from the seller's vehicle and loading them onto the buyer's vehicle if the delivery location is not the seller's warehouse Costs incurred if damage or loss of goods occurs after receiving the goods. Any fees incurred if the goods are not received promptly at the specified time All costs if the carrier cannot be designated or the carrier cannot receive the goods Refund of fees that the seller must pay in assisting the buyer in bringing the goods to the buyer's destination Cargo insurance if needed.
Notification	Notify the carrier that the goods have been delivered or cannot be delivered.	Specify the carrier, time, shipping method and pickup location.

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Advantages and disadvantages of FCA delivery conditions

What are the advantages and disadvantages of FCA? Proship answered as follows:

Advantages of FCA terms

What are the advantages of FCA terms? That is:

To prevent costs from being raised too high by the seller, the buyer needs to know the actual costs incurred in transporting and loading goods;
With costs incurred when fulfilling responsibilities, the exporter can increase the selling price;
Buyers do not need to worry about customs clearance of goods.

Disadvantages of FCA terms

FCA conditions still have disadvantages:

When the goods are delivered and successfully cleared through customs, the buyer must insure the shipment and assume the risks;
The seller must bear a lot of additional risks;
Buyers need to provide the exact actual delivery location.

We at Proship Logistics have provided sellers and buyers with the knowledge they need to know about what FCA conditions are and what FCA regulations are. If you have any questions related to "Free Carrier" or other specialized import-export terms, contact 0909 344 247 for answers and advice on the best cheap Multi-modal shipping services.

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2 comments on “ What are FCA conditions? Find out the detailed regulations in FCA conditions ”

NGOC TUYET said:
VERY EXCEPTIONAL IDEAS TO HELP PEOPLE UNDERSTAND THE ROUTE OF TRACKING BEHAVIORS OF BUYERS AND SELLERS

April 19, 2023 at 6:43 pm
- Quoc Dien said:
  Thank you for your comment
  
  April 20, 2023 at 7:49 am

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