Incoterms 2020 · Seller clears export, buyer pays the main carriage
FCA — Free Carrier
The seller delivers the goods to the carrier nominated by the buyer, cleared for export, at the named place.
Key facts
| Risk passes | When the goods are handed to the buyer's nominated carrier at the named place |
|---|---|
| Export clearance | Seller |
| Import clearance and duty | Buyer |
| Main carriage | Buyer |
| Insurance | Neither party is obliged |
| Loading | Seller loads at its own premises; otherwise the buyer unloads |
| Best for | Container, air and road shipments where the buyer controls the forwarder |
| Source | ICC Incoterms 2020, FCA |
The named place changes the loading duty
FCA at the seller's factory means the seller loads the goods onto the buyer's vehicle. FCA at a forwarder's warehouse means the seller delivers them ready for unloading and the buyer handles unloading. The price and the risk point move with that word, so name the place precisely.
FCA also has a 2020 option for an on-board bill of lading: if the contract requires one, the parties can agree that the buyer instructs the carrier to issue it to the seller after loading. That keeps letter-of-credit documents workable without changing the risk point.
FCA is usually better than EXW for cross-border
The seller is best placed to clear export: it has the invoice, the packing list and the local tax identity. FCA assigns that duty to the seller, which avoids the common EXW failure where a foreign buyer cannot complete export formalities.
The buyer still controls the main carriage and import. That makes FCA a clean split: seller handles the origin, buyer handles the border and the destination.
Frequently asked questions
Does FCA include freight?
No. The buyer pays the main carriage. The seller pays only the costs up to delivery to the nominated carrier.
When does risk pass under FCA?
When the goods are handed to the buyer's nominated carrier at the named place, not when they arrive at the destination.
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