FCA INCOTERMS - Free Carrier

This term can be used regardless of the chosen mode of transport, as well as when using more than one mode of transport.
FCA-Incoterms-2010-VINCULUM-Customs clearance Vladivostok-GC-IMPORT40 Factory or warehouse of the manufacturer or seller Delivery from the factory or warehouse to the departure terminal Placement of goods at the cargo terminal Placement of goods on board the vessel State border Sea transportation to the port of discharge Placement in a temporary storage warehouse at the port of arrival (unloading) Delivery of goods ready for unloading from the vehicle Cargo recipient's warehouse The area of expenses and responsibility of the buyer whenFCA The seller's area of expenses and responsibility under the FCA The moment of transition of risks at FCA !

"

Read more information
" >FreeCarrier" ("Free Carrier") means that the seller transfers the goods to the carrier or another person nominated by the buyer at its premises or at another stipulated point. The parties are strongly advised to identify the item most clearly at the named place of delivery, since the risk passes to the buyer at this point. 

If the parties intend to transfer the goods at the seller's premises, they must indicate the address of this premises at the agreed place of delivery. If the parties believe thatproductmust be transferred elsewhere, they must determine this transfer location.

According to the FCA, the seller is required to perform customs formalities for export, if any.

FCA, a delivery condition when the buyer provides the bulk of the transportation. At the same time, the buyer chooses the type of transport himself, organizes the entire delivery chain himself, concludes transportation contracts.

The seller's obligation to deliver is considered fulfilled when he delivers the goods after its customs clearance in the export mode:

  • loaded into the transport of the carrier company in the premises owned by the seller.
  • in the seller's vehicle, it is ready for shipment to the carrier's transport, if the free place is not located on the seller's territory:
  • in the specified location.

The specified place of delivery affects the obligations to load and unload the goods at such a place.
If the delivery takes place on the seller's territory, the seller is responsible for loading.
If the delivery takes place at any other place, the seller is not responsible for loading, unless otherwise stipulated in the contract.

In practice, this condition is usually specified using other terms, such as in the case of cargo transportation, with a volume multiple of one or more transport units (wagons, cars, barges, etc.):

  • FOT (free on truck);
  • FIW (free in wagon);
  • FIB (free into barge);

If the goods are not enough to fully load a particular vehicle and, for example, for transportation to the final destination, the buyer will need to organize cargo consolidation, then it is possible to coordinate delivery with the seller of the goods to any" >terminal, warehouse, port specified by the buyer:

  • FT (free terminal);
  • FOR (free on rail);
  • FFB (free ferry berth);
  • etc.

The buyer can appoint any person to receive the goods. As a "carrier", both the carrier itself and the forwarding company, the cargo yard of the station, berth, terminal, port, etc. can act as a "carrier". In this case, the seller is deemed to have fulfilled its delivery obligation when the goods are delivered to such a person.

When delivering on FCA terms, the seller has a more advantageous position – it has minimal risks and obligations.

Find out what needs to be done when choosing FCA Close the list of actions at FCA
  • to clarify in detail the parameters and characteristics of cargo packages (including labeling), this is necessary for subsequent customs clearance of goods;
  • find out the seller's loading capabilities;
  • to coordinate with the seller the type of vehicle, the volume of goods ready for loading (especially ifthe contractthe supply is long-term, and deliveries are made in batches under one contract)
  • take into account the specifics of cargo transportation (in cases of transportation of dangerous goods);
  • clearly coordinate with the seller the place of transfer of the goods;
  • notify the seller where and when it is necessary to delivercargo;
  • to agree with the insurance company the terms of insurance, if necessary;
  • in advance to transfer to the Seller complete data about a specific carrier, vehicle (for customs and transport documents)
  • to clarify how the seller should fulfill his obligations to ship the goods to the carrier;
  • clarify the boundaries of the carrier's responsibility and obligations for the transportation of cargo before handing it over to the buyer;
  • pay customs fees for the import of goods;
  • to carry out customs clearance of goods;

Of course, this list is not complete and depends on the specific case, but, under these conditions of delivery, the logistics of the buyer can most significantly prove themselves and bring additional profit using an intermodal delivery.

 

 

1.General obligations of the seller and the buyer under the terms of the FCA

A.1.The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, a commercial invoice-invoice, as well as any other proof of compliance of the goods with the terms of the contract of sale, which may be required under the terms of the contract.
Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure, if this is agreed by the parties or is customary.
V.1.The buyer is obliged to pay the price of the goods, as stipulated in the contract of sale.
Any document referred to in paragraphs B1-B10 may be in the form of an equivalent electronic record or other procedure, if this is agreed by the parties or is customary.

2. Licenses, permits, security controls and other formalities under FCA conditions

A.2.If necessary, the seller is obliged, at his own expense and at his own risk, to obtain an export license or other official permit and to perform all customs formalities necessary for the export of goods.
B.2.If necessary, the buyer is obliged to obtain, at his own expense and at his own risk, an import license or other official permit and perform all customs formalities necessary for the import of goods and their transportation through any country.

3.Contracts of carriage and insurance under FCA conditions

A.3.a) Contract of carriage
The seller has no obligation to the buyer to conclude a contract of carriage. However, at the request of the buyer or if it is a commercial practice and the buyer does not give instructions to the contrary in a timely manner, the seller may, at the expense and risk of the buyer, conclude a contract of carriage on normal terms. In any case, the seller may refuse to conclude a contract of carriage by notifying the buyer without delay.
b) Insurance contract
The seller has no obligation to the buyer to conclude an insurance contract. However, the seller is obliged to provide the buyer, at his request, at his risk and at his expense (if there are expenses), with the information necessary for the buyer to obtain insurance.
B.3.a) Contract of carriage
The buyer is obliged, at his own expense, to conclude a contract for the carriage of goods from the named port of shipment, except in cases when the contract of carriage is concluded by the seller, as specified in paragraph A3 (a);
b) Insurance contract
The buyer has no obligation to the seller to conclude an insurance contract.

4.Delivery and acceptance of goods under FCA conditions

A.4.The seller is obliged to deliver the goods to the carrier or another person nominated by the buyer at the agreed point (if any) at the named place of delivery on the agreed date or during the agreed period.
The delivery is considered completed:
a) if the named item is located in the seller's premises - when the goods are loaded into the vehicle provided by the buyer;
b) in any other case, when the goods are placed at the disposal of the carrier or another person nominated by the buyer in the seller's vehicle and ready for unloading.
If a specific point is not specified by the buyer, as provided in paragraph B7 (d), at the named place of delivery, if there are several suitable points, the seller has the right to choose the point that best meets its purpose.
Unless the buyer notifies the seller otherwise, the seller may deliver the goods for carriage in such a way as may be required with respect to the quantity and/or nature of the goods.
V.4.The buyer is obliged to accept delivery of the goods as soon as they are delivered in accordance with paragraph A4.

5. Transfer of risks under FCA conditions

A.5.The seller bears all risks of loss or damage to the goods until the moment of its delivery in accordance with paragraph A4, except for the risks of loss or damage in the circumstances specified in paragraph B5.
V.5.The buyer bears all risks of loss or damage to the goods from the moment of its delivery in accordance with paragraph A4.
If:
(a) The buyer fails to notify, as provided for in paragraph B7, of the nomination of the carrier or other person, as provided for in paragraph A4, or does not send such notification; or
b) the carrier or the person nominated by the buyer, as provided in paragraph A4, will not accept the goods on its own responsibility,
then the buyer bears all risks of loss or damage to the goods:
i) from an agreed date or in the absence of such an agreed date,
ii) from the date within the agreed period communicated to the seller as provided for in paragraph B7, or if such date is not communicated,
iii) from the expiration date within the agreed delivery period,
provided that the goods have been explicitly individualized as the goods that are the subject of the contract.

6.Cost allocation under FCA conditions

A.6.The seller is obliged to pay:
  • all expenses related to the goods up to the time of its delivery in accordance with paragraph A4, except for expenses paid by the buyer, as provided for in paragraph B6;
  • if necessary, the costs of customs formalities to be paid for the export of goods, as well as any duties,taxesand other expenses paid during export.
V.6.The buyer is obliged to pay:
  • all expenses related to the goods from the moment of their delivery, as provided for in paragraph A4, except, if necessary, the costs of customs formalities for the export of the goods, as well as all taxes, duties and charges payable on the export of the goods, as provided for in paragraph A6 (b);
  • all additional costs incurred as a result of the buyer's non-nomination of the carrier or other person, as provided for in paragraph A4, non-acceptance of the goods by the carrier or the person nominated by the buyer, as provided for in paragraph A4, or
    non-sending by the buyer of the relevant notice, as provided for in paragraph B7, provided that the goods have been explicitly individualized as goods that are the subject of the contract.
  • if necessary, the costs of paying taxes, duties and other official fees, as well as customs formalities to be paid when importing goods, and the costs of transporting them through any country.

7.Notification to the buyer and seller under FCA conditions

A.7.The seller is obliged, at the expense and risk of the buyer, to give him sufficient notice either that the goods were delivered in accordance with paragraph A4, or that the carrier or another person nominated by the buyer did not accept the goods within the agreed time.
V.7.The buyer is obliged to inform the seller:
a) the name of the carrier or any other person nominated, as provided for in paragraph A4, for a sufficient period to allow the seller to deliver the goods in accordance with the specified paragraph;
b) if necessary, the date within the period agreed for delivery when the carrier or the nominated person can pick up the goods;
(c) the mode of transportation to be used by the nominee; and
d) the point of acceptance of delivery at the named place.

8.Documentary proof of delivery under FCA conditions

A.8.The seller, at his own expense, is obliged to hand over to the buyer the usual proof that the goods have been delivered in accordance with paragraph A4.
The seller is obliged, at the request of the buyer, to assist the buyer, at his expense and at his risk, in obtaining a transport document.
V.8.The buyer is obliged to accept proof of delivery in accordance with paragraph A8.

9.Inspection, packaging, labeling and inspection of goods under FCA conditions

A.9.The seller is obliged to bear all costs associated with the inspection of the goods (quality control, measurement, weighing, counting) necessary for the delivery of the goods in accordance with paragraph A4, as well as the costs of inspecting the goods before shipment, including inspection, which is prescribed by the authorities of the country of export.
The seller is obliged to ensure the packaging of the goods at his own expense, except in cases when it is usually customary in this branch of trade to ship the goods specified in the contract without packaging. The seller may pack the goods in such a way as is necessary for their transportation, unless the buyer notifies the seller of the specific packaging requirements prior to the conclusion of the contract.Markingthe packaged goods must be carried out properly.
V.9.The buyer is obliged to bear the costs of mandatory inspection of the goods before shipment, except in cases when such inspection is carried out by the order of the authorities of the country of export.

10.Assistance in obtaining information and related expenses under the terms of the FCA

A.10.If necessary, the seller is obliged to provide the buyer in a timely manner or assist him in obtaining, at the buyer's request, at his risk and at his expense, documents and information, including security information, which the buyer may need to import the goods and/ or transport them to the final destination.
The seller is obliged to reimburse the buyer for all costs and fees incurred by the buyer when receiving or providing assistance in obtaining documents and information, as provided in paragraph B10.
Q.10.The buyer is obliged to inform the seller in a timely manner about the requirements for security information so that the seller can act in accordance with paragraph A10.
The buyer is obliged to reimburse the seller for the costs and fees incurred by him for providing or assisting in obtaining documents and information, as provided for in paragraph A10.
If necessary, the buyer is obliged to provide the seller in a timely manner or assist the seller in obtaining, at the seller's request, at his risk and at his expense, documents and information, including security information, which the seller may need for transportation, export of goods and for its transportation through any country.
Views: 29980
EXW FCA FAS FOB CFR CIF CPT CIP THAT DAP DDP