Free Carrier (FCA). Choosing the wrong incoterm could be quite costly; It’s important to note that the rules offered by the Incoterms do not give a complete contract of sale. The free carrier is a trade term dictating that a seller of goods is responsible for the delivery of those goods to a destination specified by the buyer. This term thus represents the minimum obligation for the seller. The buyer must arrange for transport, however. Using clarity and specificity when citing them is critical. This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. It isn't obligated to unload the goods, but the seller might be responsible for ensuring that the goods have been cleared for export out of the United States if the destination is the seller's premises. The seller also clears the goods for export from the country of origin. Cost and freight (CFR) is a trade term obligating the seller to arrange sea transportation to a port of destination and provide the buyer with the documents necessary to obtain the goods from the carrier. Free carrier (FCA) terms mean that the seller must hand over the cargo to the first carrier nominated by the buyer. INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS FCA - Free Carrier (named place of origin) The seller delivers the goods, cleared for export, at a named place (possibly including the seller's own premises). The International Chamber of Commerce has dictated these terms. Ex works (EXW) is a shipping arrangement in international trade where a seller makes goods available to a buyer, who then pays for transport costs. Not surprisingly, this term is also referred to as “named place delivery”. An inland carrier for road transportation, a freight forwarder for multimodal transportation, an airline, rail transport company or a shipping line. The seller includes transportation costs in its price and assumes the risk of loss until the carrier receives the goods. For a full summary of all incoterms, check out our guide: Incoterms 2020, Shipping, and Trade Terms defined // Complete Guide. It is advised that the buyer selects clearly the place of delivery. FCR is a proof of delivery and can be used for document compliance instead of Bill of Lading. What Is FCA? A “carrier” means any company that has been nominated by the buyer to act as a transport agent, meaning that a freight forwarder qualifies as carrier in this case. A. This term places the maximum obligations on the seller and minimum obligations on the buyer. Free carrier is a trade term requiring the seller of goods to deliver those goods to a named airport, shipping terminal, warehouse, or other carrier location specified by the buyer. Definition: FCA is usually followed by a place name – the initial destination of the goods, FCA Anchorage for example. Provision of goods in conformity with the contract The seller is only responsible for delivery to the specified destination as part of the liability transfer. The point must be a location within the seller’s home country, however. FCA-Free Carrier-(named place) "Free Carrier" means that the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. For example: Seller arranges pre-carriage from seller’s depot to the named place, which can be a terminal or transport hub, … FCA: Free Carrier Definition: FCA is usually followed by a place name – the initial destination of the goods, FCA Anchorage for example.Not surprisingly, this term is also referred to as “named place delivery”. Incoterms, often called trade terms or shipping terms, With whom he 's done business before signed between a shipper and a transportation company for the goods FCA... 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