FCA is a global, standardised shipping term written by the International Chambre of Commerce (ICC). In this article you’ll find information about what rules apply to buyer and seller respectively when FCA is used as terms, and how PostNord can assist you with FCA deliveries.
What does FCA Incoterms mean?
FCA and Incoterms are abbreviations. FCA stands for Free Carrier while Incoterms stands for International Commercial Terms. In short, FCA is one of several international shipping terms included in what is known as the Incoterms – meaning a collection of standardised trade terms written by ICC and used by companies all over the world.
FCA delivery terms – this applies to buyers and sellers respectively
The purpose of FCA is to define the responsibility of buyer and seller when shipping products. Like other Incoterms, FCA is meant to specifically clarify the terms when importing and exporting products, but the terms can also be used domestically.
When FCA applies as the shipping term, the following is true:
- The seller is responsible for transporting and delivering the goods to a location named by the buyer
- The seller is responsible for export declaration of international shipments
- The buyer is responsible for the risks associated with the shipment when the shipment has been delivered to the first transporter or postal terminal
- Costs of shipping are paid for by the buyer
Regarding insurance during shipping, the seller and the buyer should both have transport insurance. This is because the seller is responsible for the risks until delivery to the first transporter, while the buyer carries the risks for the remainder of the transport. An alternative that carries a lower risk for the buyer is DDP, where the seller takes on all the risks during transport, until the goods are ready to be unloaded at the location of the buyer.
When do FCA Incoterms apply?
FCA applies when buyer and seller have agreed to use it as part of a transport agreement. Be sure to clarify details about the first transporter and/or terminal where the risk is carried over from seller to buyer, and any changes to the general FCA terms.
Use PostNord for safe FCA shipments
If you want to make sure the product transports of your company are carried out in a safe and cost-efficient manner, let PostNord help you. No matter the delivery terms used by your company – be it FCA or something else – we make sure that each shipment is delivered quickly and safely. We can also act as your agent for customs declarations, if you wish.
Do you have questions about transports that use FCA terms? Get in touch with our customer service team and we’ll tell you more about how it works and what you need to think about. You can also check out PostNord’s articles on logistics.