In international trade, FCA (Free Carrier) is one of the most flexible and widely used Incoterms, applicable to all modes of transport. However, the division of responsibilities under FCA can sometimes cause confusion for businesses. Let’s break it down in detail
1️⃣ What is FCA?
Under FCA, the Seller delivers the goods—cleared for export—to the carrier (or another party) nominated by the Buyer. Delivery can take place either at the Seller’s premises or at another specified location.
2️⃣ Responsibilities of the Parties
👤 Seller’s Responsibilities:
- Handle export customs clearance and bear related costs.
- Bear all costs and risks until the goods are delivered:
- If delivery takes place at the Seller’s premises: The Seller is responsible for loading the goods onto the transport arranged by the Buyer.
- If delivery takes place at another location (port, ICD, etc.): The Seller transports the goods to the named place, delivers them on their own means of transport (ready for unloading), and hands them over to the carrier. The Seller is not responsible for unloading.
👤 Buyer’s Responsibilities:
- Arrange the main carriage, nominate the carrier, and pay international freight charges.
- Handle import customs clearance and pay all applicable taxes and fees.
- Bear all risks of loss or damage to the goods from the moment the Seller completes delivery at the agreed location.
- Pay local charges at the export country.
- Bear inland transportation costs in the export country from the place of delivery to the port.
3️⃣ Key Improvement: FCA 2020 vs. FCA 2010 💡
The most important update relates to the On-board Bill of Lading:
- Issue under Incoterms 2010:
When using a Letter of Credit (L/C), banks usually require an “On-board” Bill of Lading. However, under FCA, the Seller delivers goods inland before they are loaded onto the vessel, making it difficult to obtain this document (since carriers typically work with the party booking the freight). - Update in Incoterms 2020:
A new option has been introduced. If agreed, the Buyer can instruct their carrier to issue an “On-board” Bill of Lading to the Seller after the goods are loaded onto the vessel.
👉 This allows the Seller to obtain compliant documents for L/C payment smoothly.
Choosing the right Incoterms helps businesses optimize costs and manage risks effectively. If you need a reliable international logistics solution or expert consultation for your upcoming shipment, the team at Songwin International Logistics Vietnam is always ready to support you!
SONGWIN INTERNATIONAL LOGISTICS VIETNAM CO., LTD
📍 Address: 344 Nguyen Trong Tuyen Street, Tan Son Hoa Ward, Ho Chi Minh City
📞 Hotline (24/7): 083.681.3969 - 0373.262.105
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