Free Carrier (FCA)

Free Carrier (FCA) is an Incoterm that defines the seller’s and buyer’s responsibilities for delivering goods to a carrier. It is widely used for all modes of transport, including multimodal shipments.

Key takeaways

• Seller delivers goods to a carrier or another named place and bears risk until delivery to that carrier/place.
• Buyer nominates the carrier and generally arranges and pays for the main carriage.
• Seller is responsible for export formalities (licenses, duties, customs clearance).
• If delivery is at the seller’s premises, the seller normally loads the goods; if delivery is at another place, the seller is not required to unload.

What FCA means

Under FCA the seller must:
* Prepare and package the goods for export.
* Clear the goods for export and handle export formalities.
* Deliver the goods to the carrier or another agreed place (e.g., an airport, shipping terminal, warehouse, or the seller’s premises).
Risk and responsibility transfer from seller to buyer once the goods are handed to the carrier at the agreed place.

How it works in practice

• The buyer typically nominates the carrier and arranges the main carriage and insurance (unless parties agree otherwise).
• The seller pays for pre-carriage to the named place and bears risk up to the point of delivery to the carrier.
• If delivery occurs at the seller’s premises, the seller normally loads the goods onto the buyer’s vehicle. If delivery occurs at another location (e.g., a carrier’s terminal), the seller’s obligation generally ends when the goods are made available to the carrier; unloading need not be performed by the seller.
• Once delivery to the carrier is complete, the buyer assumes risk and the goods should be recorded as the buyer’s asset.

Risk, title, and cost allocation

• Risk of loss or damage passes to the buyer when the seller delivers the goods to the carrier at the agreed place.
• Costs are split: the seller covers export and pre-carriage costs; the buyer covers the main carriage, insurance (if desired), import duties, and unloading/import formalities (unless contractually specified otherwise).

Comparisons with other terms

• FCA vs FOB: FOB (Free On Board) applies only to sea or inland waterway transport and the seller’s obligation ends when goods are loaded onto the vessel. FCA can be used for any transport mode; loading responsibilities depend on the agreed delivery place.
• FCA vs DDP: DDP (Delivered Duty Paid) places nearly all costs and risks on the seller, who must deliver goods to the buyer’s location and handle import formalities. Under FCA, the buyer takes responsibility at the carrier handover and handles import procedures and duties.

Example

Susan (seller) and Bob (buyer) agree on FCA delivery to a named carrier at a local terminal. Susan arranges pre-carriage to the terminal and completes export clearance. Once the carrier receives the goods at that terminal, risk transfers to Bob, who then arranges and pays for the main carriage to the destination and handles import formalities.

Practical notes

• FCA is flexible and commonly used in international trade because it supports multimodal transport and provides a clear handover point.
• Parties should specify the exact named place and responsibilities (e.g., who loads/unloads, who issues transport documents) to avoid disputes.
• It is advisable to consult a trade attorney or freight expert when drafting contracts that rely on Incoterms.

Bottom line

FCA allocates responsibility clearly: the seller handles export and delivery to the buyer’s nominated carrier (or another agreed place) and bears risk until that handover; the buyer assumes risk thereafter and typically arranges and pays for the main transport and import formalities. Properly specifying the named place and duties in the contract is essential for a smooth transaction.