Incoterms
FCA (Free Carrier)
Incoterm under which the seller clears goods for export and hands them to the buyer's carrier at a named place.
In four languages
Under FCA the seller delivers the goods, cleared for export, to the carrier or forwarder chosen by the buyer at an agreed place. If that place is the seller's premises, delivery happens once the goods are loaded on the buyer's truck. If it is elsewhere, such as a forwarder's warehouse, delivery happens when the goods arrive on the seller's vehicle, ready for unloading. Risk passes at that moment, and the buyer pays the main transport. FCA works for any mode and is recommended by ICC for containers. Incoterms 2020 also lets the parties agree that the carrier issues an on-board B/L to the seller, useful under a letter of credit. Example: a Riyadh buyer agrees FCA Guangzhou with three suppliers, who each clear export and deliver to the forwarder's warehouse for consolidation.
Questions
What is the difference between FCA and FOB?
Under FOB, risk passes when goods are on board the ship. Under FCA it passes when the goods are handed to the carrier, which suits containers and works for any transport mode.
Can FCA be used with a letter of credit?
Yes. Incoterms 2020 allows the buyer to instruct its carrier to issue an on-board B/L to the seller for presentation to the bank.