FCA
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Under FCA (Incoterms® 2020), the seller clears the goods for export and hands them over to the carrier chosen by the buyer, at a named place. From there, the buyer pays the transport and takes the risk.
In plain words
If the named place is the seller's premises, the seller must load the goods onto the buyer's truck. If it is another place, such as the forwarder's warehouse or a container terminal, the seller brings the goods there, and the buyer's carrier unloads them. FCA works for all modes of transport, including containers.
Because the seller handles export clearance, FCA is often better than EXW for international sales. It is also often better than FOB for container shipments, because the seller usually hands containers over at the terminal before they are loaded on the ship. Under the 2020 rules, the parties can agree that the buyer's carrier issues an on-board Bill of Lading to the seller, which helps with letters of credit.
Example from real shipping
A Turkish producer sells textiles “FCA Ambarlı Port, Incoterms® 2020”. The producer clears the goods for export and delivers the loaded container to the terminal. The risk passes to the buyer at that moment. The buyer's forwarder pays the ocean freight to the destination.
Related terms
- EXWUnder EXW (Incoterms® 2020), the seller only makes the goods ready at its own premises. The buyer arranges and pays for everything after that, including loading and export clearance.
- FOBUnder FOB (Incoterms® 2020), the seller clears the goods for export and loads them on board the ship chosen by the buyer, at the named port of shipment. The risk passes to the buyer when the goods are on board.
- B/LA Bill of Lading (B/L) is the main document for sea freight. The carrier issues it when it takes the goods. It shows who can collect the goods at the destination.
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Request a QuoteThis glossary is general information, not legal or customs advice. Rules, fees, and practice can differ by carrier, port, and country.