x Do you want to learn in detail about what FCA conditions are?
How important is the role? x Are you wondering what advantages FCA has compared to other conditions in Incoterms 2020?
x You need to update the address of a reputable, professional, low-cost delivery unit?
At Proship.vn, we will use this knowledge sharing article to clarify the definition of what FCA is, the detailed regulations on what FCA conditions are, what role it plays, in addition to some The advantage is given to prove that FCA is superior to other conditions of Incoterms 2020 . At the same time, Proship also provides additional information you need to know about professional freight forwarding services for many years with service quality that far exceeds all customer expectations.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
What are FCA conditions?
What are FCA conditions ? FCA terms mean Free Carrier - Delivery to the carrier
Free Carrier – delivers the goods to the carrier, meaning the seller delivers the goods cleared for export to the buyer at the seller's facility or at another agreed place specified in the foreign trade contract. The seller's liability ends when the goods are delivered to the carrier hired by the buyer. From there, all risks related to the goods will be transferred from the seller to the buyer from the time the goods are delivered. The responsibilities of the seller and buyer in Incoterms FCA can be briefly stated as follows:
– The seller clears customs for export goods and the buyer clears customs for imported goods
– Buyer rents means of transport
– Delivery location in the seller's country. There are common delivery locations such as:
- FCA conditions (at seller's warehouse)
- FCA Conditions (Departure Airport)
- FCA conditions (port of export).
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
Learn the detailed regulations in FCA Incoterms 2020 conditions
What FCA conditions are has been explained and detailed regulations on the obligations and responsibilities of sellers and buyers are also indicated as follows:
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Obligations | Seller obligations | Buyer obligations |
General obligations | The seller must deliver the goods, commercial invoice and goods documents | The buyer must pay for the goods as agreed in the contract |
Delivery |
|
The buyer picks up the goods from the location at the agreed time |
Risk | Bear all risks of loss/damage until completion of the order at the agreed place and time |
|
Transport |
|
Sign and pay all costs for the contract with the shipping company. If the contract has a clause "the seller contracts for carriage", the buyer does not need to do this
|
Insurance | The seller is not obliged to purchase goods insurance. But the buyer must support the buyer if required so that the buyer can buy 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 all proof of delivery. If agreed in advance, the buyer must instruct the carrier to issue shipping documents
|
Customs clearance for export and import | Carry out customs procedures and pay fees for export clearance of goods (license, security, inspection, etc.). Support for import customs clearance | Export customs clearance support. Import customs clearance and formalities (licenses, security, official documents). |
Control | The seller must control 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:
|
The buyer bears all costs from the time of receipt of goods at the agreed point:
|
Notification |
Notify the carrier that the goods have been delivered or cannot be delivered
|
Specify the carrier, time, shipping method and pickup location |
What are the advantages of FCA compared to other delivery terms?
Once you clearly understand the concept of what FCA is and what FCA conditions are, you can realize the outstanding advantages of FCA compared to other delivery conditions in international shipping such as FOB, CIF, FCA,... Currently Nowadays, FCA is more dominant and is also recommended by experts. The reason is because FCA has many outstanding advantages as shown as follows:
FCA conditions are adapted to modern container shipping methods. Accordingly, the seller and buyer agree that the buyer will arrange and load the goods onto the means of transport provided by the seller. The place of transfer of risk may be the seller's premises or any location within the seller's domestic territory. Thereby helping to minimize risks in the process of transferring goods from seller to buyer as FOB conditions.
Compared to other conditions in Incoterms 2020, FCA brings many benefits to individual sellers and buyers.
FCA is a delivery condition that allows flexibility in the transportation of goods between seller and buyer, thereby bringing benefits to both parties. At FCA, the seller is responsible for loading goods onto the transport vehicle and completing export customs clearance procedures. Since the seller usually has a good relationship with the shipping line and customs, it is much more convenient for the seller to do this.
Meanwhile, for the EXW condition, the buyer must bear full responsibility for exporting the goods, which can be costly and time-consuming, and also makes the import process difficult. Compared to EXW, FCA conditions are considered much more favorable.
Proship provides freight forwarding services with cheap, economical and safe costs
We at Proship Joint Stock Company currently provide optimal transportation solutions, helping domestic business units and organizations feel more secure with their assets and shipments. This is one of the sea freight shipping addresses that ensures absolute safety for all your valuable packages.
Proship always commits to customers: Deliver directly to the recipient, on time as agreed, quick procedures, competitive rates, transparent delivery route with clear and detailed proof of delivery,... Transportation service Our sea freight is always provided at the seaport, specifically:
- Cam Pha Seaport (Quang Ninh)
- Cua Lo (Nghe An)
- Nghi Son (Thanh Hoa)
- Hai Phong (Hai Phong)
- Da Nang (Da Nang)
- Dung Quat (Quang Ngai),…
Container transportation service with advanced transportation methods creates maximum efficiency and convenience for all customers. So what is special about Proship's transportation and delivery services compared to the Container transportation services of other transportation companies and units?
Flexible & proactive schedule
With good relationships with relevant parties and available experience and capacity, Proship can proactively arrange appropriate schedules to carry out delivery plans so customers can be assured of the accuracy of the package. Container transportation services.
Cheapest & most competitive rates
There are currently many companies implementing container freight services, so Proship always applies the most competitive and reasonable rates for customers. You save costs to reduce product prices and increase the competitiveness of output goods. Reasonable costs contribute to improving your business efficiency.
Optimal and attractive incentives
Proship has promotional programs for customers who regularly use Container freight services. In particular, customers with large orders also receive many corresponding preferential policies.
Proship has just provided sellers and buyers with the necessary knowledge to better understand the concept of FCA Conditions? Find out the detailed regulations in FCA conditions , how they play an important role and how they benefit each individual involved. If you have any questions about the definition of FCA, or how to use it, please contact hotline 0909 344 247 to receive the most dedicated support from our experienced staff. Proship.vn, helps plan delivery and receipt of goods more quickly and conveniently.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
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