News

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

Posted on by Tran Duy Thuan

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

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),…
What are FCA conditions? Find out the detailed regulations in FCA conditions
Proship is one of the freight forwarding units that applies competitively cheap freight rates with a smooth route.

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.

You may be interested in  what is C/O form E? What are the forms and regulations of C/O form E?

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.

LATEST UPDATE PICTURES OF CONTAINER PROSHIP LOGISTICS TRACTOR

What is FCA?

What is FCA ? 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:

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
  • Delivery by placing the order at the agreed location on time and loading it onto the transport vehicle
  • Or transport the goods to an 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 of loss/damage until completion of the order at the agreed place and time
  • All risks of loss/damage from the time the goods are delivered or the end of the agreed delivery 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. However, if requested by the buyer, the seller must provide all documents or information necessary for the buyer to enter into a transportation contract with the carrier.
  • 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. 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:

  • 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
  • Fees for packaging and labeling goods
  • Cost of shipping goods to the agreed location if that location is not the seller's warehouse
  • The cost of loading the 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
What are FCA conditions? Find out the detailed regulations in FCA conditions
Under FCA conditions, sellers & buyers are clearly defined on different obligations that need to be applied and properly implemented.

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:

You may be interested in  What is a commercial invoice? How are commercial invoices regulated?

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.

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

You may be interested in  What are FCA Conditions? Understand and effectively apply current FCA conditions

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

Was this article helpful to you?

Select the number of stars to vote for this article!

Average score / 5. Total votes:

Be the first to vote for this article!

Tran Duy Thuan

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

Reply

Your email will not be displayed publicly. Required fields are marked *

Call 093 9999 247ZaloMessengerKinhdoanh@proship.vn
Call
Zalo

Container shipping
Messenger
Email