Incoterms 2020 · Any mode of transport

FCA (Free Carrier) — meaning, responsibilities & when to use

Under FCA the seller delivers the goods, cleared for export, to a carrier nominated by the buyer. Here's what Free Carrier means and how cost and risk are split.

FCAFree Carrier

FCA (Free Carrier) is the Incoterm where the seller delivers the goods, cleared for export, to a carrier or place nominated by the buyer. Risk transfers at that handover, after which the buyer bears the main carriage. It works for any mode and is the modern, flexible alternative to FOB and EXW.

Where risk transfers

Risk passes when the goods are handed to the buyer's nominated carrier at the named place (which can be the seller's premises or a terminal).

Responsibilities

Who pays for what

Seller is responsible for

Packaging and export customs clearance
Delivery to the named place / carrier
Loading if delivery is at the seller's premises

Buyer is responsible for

Main carriage (freight) and insurance
Import customs clearance and duty
Onward delivery to the final destination

When to use it

When FCA makes sense

FCA is recommended for containerised cargo and multimodal shipments. It fixes the practical problem of EXW (export clearance) and is preferred over FOB for containers, since risk passes at the terminal rather than at the ship's rail.

FAQ

FCA — common questions

What does FCA mean?

FCA (Free Carrier) means the seller delivers the goods, cleared for export, to a carrier nominated by the buyer at a named place. Risk and onward cost pass to the buyer at that point.

Why use FCA instead of FOB?

For containerised cargo, FCA is safer because risk transfers when the container is handed to the carrier at the terminal, not at the ship's rail. FOB can leave a gap of responsibility while the container sits at the port.

Does the seller clear export under FCA?

Yes — unlike EXW, the seller handles export customs clearance under FCA, which makes it far more practical for international trade.

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