WHAT IS THE FCA (FREE CARRIER) INCOTERMS?
The FCA Incoterms 2020 (Free Carrier) is one of the types of Incoterms that can be used with any mode of transport.
“FCA can be used in any mode of transport, including by sea”
FCA is used in the international purchase and sale contracts. The FCA Incoterms 2020 states that the seller delivers the goods to the carrier or another person designated by the buyer, at the seller’s premises or at another designated delivery location.
When is it most recommended tu use FCA Incoterms 2020?
It is highly recommended that parties specify the designated delivery location for two reasons. Firstly, because the chosen place of delivery has an impact onto the obligations of loading and unloading the goods. On the other hand, because the risk and costs are passed on to the buyer at the time of delivery of the goods.
Therefore, it is important to have in mind that:
- If the goods are delivered to the buyer at the seller’s premises (factory or warehouse), the seller is responsible for the loading. The risk is passed on to the buyer once the goods have been loaded onto the first means of transport.
- If the goods are delivered elsewhere (cargo terminal, port, airport) in the seller’s country, the buyer is responsible for unloading. The risk passes before the goods are unloaded from the first means of transport to be delivered to the carrier designated by the buyer.
The risks and obligations of the parties will depend on the place where the goods are delivered
The FCA Incoterms 2020 requires that the seller will be the one who clears the goods through customs for export. However, it does not assume the import clearance and the buyer is the responsible party.
FCA Incoterms 2020 requires that the seller will be responsible to clear the goods through customs for export.
If you are planning to enter into an international sale and you would like to introduce the FCA Incoterms 2020 or you have entered into it and you have any doubts, we encourage you to contact us so that you can have comprehensive advice from experts.
For more information:
📞 +34 611 160 613 📍 Plaça Josep Pla 4, 1-2 17001 Girona 📧 nuria@alquezaradvocats.com www.alquezaradvocats.com
Article owned by Núria Alquézar Sánchez
