What is FCA?
FCA, short for Free Carrier, is one of the eleven Incoterms® 2020 rules. The seller clears the goods for export and hands them over to the carrier or forwarder nominated by the buyer at a named place, such as the seller’s factory, a forwarder’s warehouse or a container terminal. From that moment the buyer pays for the main transport and carries the risk.
FCA works for every transport mode: sea, air, road, rail and multimodal. That makes it the most flexible “buyer controls transport” term, and the one the ICC recommends for container shipments instead of FOB.
Core principle: The seller’s job ends when the goods are handed to the buyer’s carrier at the named place, cleared for export.
Who does what under FCA
| Task | Seller | Buyer |
|---|---|---|
| Packing and export clearance | ✓ | |
| Delivery to the named place | ✓ | |
| Loading at the seller’s premises | ✓ (if that is the named place) | |
| Main carriage and insurance | ✓ | |
| Import clearance, duty and import VAT | ✓ | |
| Risk passes | When the goods are handed to the buyer’s carrier at the named place | |
Two ways to use FCA
At the seller’s premises
The buyer’s truck collects at the factory and the seller loads it. Delivery happens once the goods are loaded.
At another named place
The seller brings the goods to a terminal or forwarder’s warehouse. Delivery happens when they are ready for unloading there, and the buyer’s carrier unloads.
Watch out for: Name the exact address, for example “FCA Ningbo, forwarder XYZ warehouse, Incoterms 2020”, not just a city.
Why importers choose FCA
- Control over transport: you choose the forwarder, routing and transit time, and can combine several suppliers into one shipment.
- Clear risk point: risk passes on handover, not when goods are loaded on a vessel days later.
- Export handled by the supplier: the seller deals with export formalities in its own country, which a foreign buyer usually can’t do.
- Bank-friendly: Incoterms 2020 lets the parties agree that the buyer’s carrier issues an on-board bill of lading to the seller, which letters of credit often require.
Example: A Finnish homeware brand buys ceramics from a factory near Shenzhen on FCA Shenzhen, forwarder’s warehouse. The factory clears export and delivers the cartons to the forwarder, who consolidates them with goods from two other suppliers into one container to Rotterdam. The brand clears import in the EU and the goods go straight into its fulfilment warehouse.
Common mistakes
- Using FOB for containers when FCA reflects the real handover at the terminal.
- Not booking the buyer’s carrier in time, so goods wait at the seller and storage costs start.
- Forgetting that insurance is not included: the buyer carries the risk from handover and should insure the main transport.
Frequently asked questions
Who pays the main transport under FCA?
The buyer. The seller only pays to deliver the goods, cleared for export, to the named place.
Is FCA only for sea transport?
No. FCA works for any mode of transport, including air, road, rail and combined transport.
When does risk pass under FCA?
When the goods are handed to the carrier nominated by the buyer at the named place: loaded, if that place is the seller’s premises, or ready for unloading anywhere else.
Does FCA include import clearance?
No. The buyer handles import clearance and pays duty and import taxes in the destination country.
