CHENGYU SHIP · INCOTERMS® 2020 GUIDE

FCA INCOTERMS® 2020
FREE CARRIER

A practical guide to FCA shipping — including seller and buyer responsibilities, export clearance, risk transfer, FCA vs EXW and FOB, container shipping, and the Incoterms® 2020 on-board Bill of Lading option.

ANY MODESELLER CLEARS EXPORTBUYER CONTROLS MAIN FREIGHTCONTAINER FRIENDLY
SEE FCA RESPONSIBILITIES
FCA MEANSFREE
CARRIER
SELLER DELIVERS TO BUYER'S CARRIER
AT THE NAMED PLACE
QUICK ANSWER

WHAT DOES
FCA MEAN?

Under FCA (Free Carrier), the seller delivers the goods to the carrier or another person nominated by the buyer at the named place of delivery and completes export clearance.

The exact delivery moment depends on the named place. If delivery is at the seller's premises, the seller loads the goods onto the buyer-arranged collecting vehicle. If delivery is at another named place, delivery occurs when the goods arrive there on the seller's vehicle, ready for unloading and at the disposal of the buyer's nominated carrier or person.

FCA CAN BE USED FOR ANY MODE OF TRANSPORTIt works for road, rail, air, sea, courier and multimodal transport, and is often more suitable than FOB for containerized cargo delivered to a terminal before vessel loading.
01

SELLER CLEARS EXPORT

The seller completes export formalities before delivery to the buyer's nominated carrier.

02

BUYER CHOOSES MAIN CARRIER

The buyer normally arranges the main international carriage after FCA delivery.

03

RISK TRANSFERS AT NAMED PLACE

The chosen delivery point determines exactly when risk transfers from seller to buyer.

RESPONSIBILITY SPLIT

WHO DOES WHAT
UNDER FCA?

FCA gives the buyer control of the main carriage while leaving export clearance and agreed origin delivery with the seller.

SELLER

DELIVER TO THE NOMINATED CARRIER

  • Provide goods according to the sales contract
  • Package and mark the goods as required
  • Complete export customs clearance
  • Obtain export licences / approvals when required
  • Deliver the goods at the named FCA place
  • Load the buyer's collecting vehicle if delivery is at seller's premises
  • Bear cost and risk until FCA delivery is completed
BUYER

MAIN CARRIAGE & IMPORT SIDE

  • Nominate the carrier or other receiving person
  • Arrange the main international carriage
  • Provide transport instructions to the seller
  • Bear risk after FCA delivery occurs
  • Handle import customs clearance
  • Pay applicable import duties and taxes
  • Arrange destination transport and final delivery
TWO DELIVERY SCENARIOS

WHERE DOES FCA
DELIVERY OCCUR?

The named place changes the seller's delivery obligation. This is one of the most important details in an FCA contract.

SCENARIO 01

SELLER'S PREMISES

SELLER LOADS THE BUYER'S VEHICLE

If the named place is the seller's factory or warehouse, delivery occurs when the goods are loaded onto the means of transport arranged by the buyer.

RISK TRANSFERS AFTER LOADING AT SELLER'S PREMISES.
SCENARIO 02

ANOTHER NAMED PLACE

GOODS ARRIVE READY FOR UNLOADING

If the named place is a terminal, warehouse or other location, delivery occurs when the seller's vehicle reaches that place and the goods are ready for unloading at the carrier's disposal.

RISK TRANSFERS BEFORE UNLOADING FROM SELLER'S VEHICLE.
RISK TRANSFER

WHERE DOES
FCA RISK TRANSFER?

Under FCA, the named delivery place is critical because it identifies where the seller completes delivery and where risk passes to the buyer.

SELLER RISKFactory / WarehouseGoods prepared
→
SELLER RISKExport ClearanceSeller responsibility
→
RISK TRANSFERFCA NAMED PLACECarrier receives goods
→
BUYER RISKMain FreightInternational carriage
→
BUYER RISKImport + DeliveryDestination side
BE PRECISE WITH THE NAMED PLACE.

“FCA Shenzhen” may still be too broad. State the factory, terminal, warehouse or other exact delivery point whenever practical.

COST ALLOCATION

WHO PAYS
UNDER FCA?

COST / TASKSELLERBUYER
Goods & export packagingYES—
Export customs clearanceYES—
Loading at seller's premisesYES—
Unloading at another named FCA placeNot requiredYES
Main international freight—YES
Cargo insuranceNot required by FCAOptional / Buyer choice
Import customs clearance—YES
Import duties & taxes—YES
COMMON COMPARISON

FCA VS EXW:
WHAT'S THE DIFFERENCE?

Both let the buyer control the main transport, but FCA gives the seller more origin responsibility and is often more practical for international exports.

EXW

BUYER HANDLES EXPORT

Seller makes the goods available at the named place and does not have to load the collecting vehicle or clear for export.

EXPORT CLEARANCEBUYER
FCA

SELLER HANDLES EXPORT

Seller completes export clearance and delivers to the buyer's nominated carrier at the named place.

EXPORT CLEARANCESELLER
READ EXW INCOTERMS →
IMPORTANT FOR CONTAINERS

FCA VS FOB

FOB is limited to sea and inland waterway transport and uses an on-board vessel delivery point. FCA can be used for any mode and can better match container shipments handed to the carrier before vessel loading.

FCADELIVERY TO CARRIER

Useful for containers, terminals, air freight and multimodal transport.

RISK: AT NAMED FCA DELIVERY POINT
FOBDELIVERY ON BOARD VESSEL

Use only for sea / inland waterway transport when the on-board delivery point fits the transaction.

RISK: ON BOARD AT ORIGIN PORT
READ FOB INCOTERMS →
INCOTERMS® 2020 CHANGE

FCA & THE
ON-BOARD BILL OF LADING

In some sea-freight transactions — especially where a letter of credit is involved — the seller may need an on-board Bill of Lading even though FCA delivery occurs before vessel loading.

Incoterms® 2020 allows the parties to agree that the buyer will instruct its carrier to issue an on-board Bill of Lading to the seller after loading. The seller then provides that document to the buyer as agreed.

OPTION UNDER FCA 2020BUYER INSTRUCTS
CARRIER
↓ON-BOARD B/L
TO SELLER
↓SELLER TENDERS
DOCUMENT TO BUYER
SHIPPING FROM CHINA

HOW DOES FCA
FROM CHINA WORK?

FCA can work well for buyers sourcing from China who want their own forwarder to control international transport while the supplier handles export clearance and origin delivery to an agreed point.

01SUPPLIER PREPARES CARGO

Goods and export packaging are prepared.

02BUYER NOMINATES CARRIER

The buyer or forwarder provides transport instructions.

03SELLER CLEARS EXPORT

China export customs formalities are completed.

04FCA DELIVERY OCCURS

Goods are delivered at the agreed named place.

05BUYER CONTROLS MAIN FREIGHT

Sea, air or multimodal transport proceeds under buyer control.

06IMPORT & FINAL DELIVERY

Buyer handles destination-side customs and delivery.

PRACTICAL DECISION

WHEN DOES FCA
MAKE SENSE?

FCA MAY FIT WHEN:
  • You want your own forwarder to control the main freight
  • The supplier can complete export clearance
  • You are shipping by air, road, rail or multimodal transport
  • Container cargo is handed to a carrier before vessel loading
  • You want a clearer origin handover point than EXW
CONSIDER ANOTHER TERM WHEN:
  • You want pickup before seller loading / export — consider EXW carefully
  • You want delivery on board a vessel — consider FOB where appropriate
  • You want seller-paid main carriage — consider CPT / CIP
  • You want delivery to destination — consider DAP / DDP where practical
CONTRACT WORDING

HOW SHOULD FCA
BE WRITTEN?

The delivery point should be specified as precisely as possible because it determines where risk transfers and may affect loading or unloading responsibility.

EXAMPLE — SELLER'S PREMISESFCA [Supplier Factory Address], Shenzhen, ChinaIncoterms® 2020
EXAMPLE — TERMINALFCA [Named Container Terminal], Shenzhen, ChinaIncoterms® 2020
SIMPLE EXAMPLE

FCA CHINA TO USA
IN PRACTICE

SUPPLIERDongguan, China
INCOTERMFCA Shenzhen Terminal
DESTINATIONLos Angeles, USA

The supplier completes export clearance and transports the cargo to the named Shenzhen terminal. The goods are made available there to the buyer's nominated carrier, ready for unloading from the seller's vehicle.

Risk transfers to the buyer at that FCA delivery point. The buyer's forwarder then controls the international freight, U.S. import clearance and final delivery.

SELLER HANDLES EXPORT — BUYER CONTROLS MAIN FREIGHT.
SHIPPING DOCUMENTS

DOCUMENTS OFTEN
SEEN IN FCA SHIPPING

Exact documentation depends on cargo, mode, route and regulatory requirements.

01Commercial Invoice
02Packing List
03Export Customs Documents
04Carrier Receipt / Transport Document
05Bill of Lading / Air Waybill
06Special Cargo Documents
LEARN ABOUT SHIPPING DOCUMENTS →
COMMON QUESTIONS

FCA INCOTERMS
FAQ

What does FCA mean in shipping?+

FCA means Free Carrier. The seller completes export clearance and delivers the goods to the carrier or another person nominated by the buyer at the named place.

Who pays the main freight under FCA?+

The buyer normally arranges and pays the main international carriage after FCA delivery.

Who handles export customs under FCA?+

The seller is responsible for export clearance under FCA.

When does risk transfer under FCA?+

Risk transfers at the agreed FCA delivery point. The exact moment depends on whether delivery is at the seller's premises or another named place.

Can FCA be used for air freight?+

Yes. FCA can be used for any mode of transport, including air freight and multimodal transportation.

Is FCA suitable for container shipping?+

Yes. FCA is often well suited to containerized cargo delivered to a carrier or terminal before loading on board the vessel.

What is the difference between FCA and EXW?+

Under FCA, the seller completes export clearance and delivers to the nominated carrier. Under EXW, the buyer has more origin responsibility and normally handles export clearance.

What changed for FCA in Incoterms® 2020?+

The 2020 rules added an option for the parties to agree that the buyer instructs its carrier to issue an on-board Bill of Lading to the seller after vessel loading.

GOT AN FCA QUOTE FROM YOUR SUPPLIER?

SEND THE DELIVERY POINT
TO CHENGYU SHIP.

Send us the supplier location, exact FCA delivery place, cargo details, destination and cargo-ready date. We can plan the main freight and destination-side logistics.

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01FCA Named Place
02Cargo Details
03Final Destination
04Cargo Ready Date
IMPORTANT NOTE

This page is a general educational summary and is not the official ICC Incoterms® 2020 text or legal, tax or customs advice. The named delivery place, transport arrangement and sales contract matter. Refer to the official ICC rules when incorporating FCA into a contract.

BUYING FCA FROM CHINA?

TAKE CONTROL OF
THE MAIN FREIGHT.

ChengYu Ship can coordinate sea freight, air freight, customs clearance and final delivery after your supplier completes the agreed FCA delivery.

REQUEST A SHIPPING QUOTE