FCA – Free Carrier Incoterms® 2020: Useful for buyers and sellers?

Free Carrier (FCA) is an Incoterms control that requires the seller to deliver the products to the buyer’s designated carrier at a specified location. From that point onward, the buyer is responsible for all costs and hazards. In this detailed tutorial, you will learn more about FCA obligations and hazards, and when to apply FCA examples.

WhatsApp Channel Join Now
Telegram Group Join Now
Instagram Group Join Now

Understanding FCA Incoterms 2020

What Are FCA Incoterms?

FCA is an abbreviation for “Free Carrier,” and it is one of the internationally recognized Incoterms used in international trade. It specifies the seller’s and buyer’s responsibility for product delivery. FCA indicates that the seller delivers the goods, cleared for export, to the buyer’s designated carrier at the seller’s premises or another specified location.

How Does FCA Benefit Buyers?

Control Over Transportation: Buyers can select the carrier and have more control over the transit process, ensuring that their goods are treated properly.
Cost Savings: Buyers can frequently negotiate lower delivery costs, resulting in cost savings.
Reduced Risk: At a predetermined time, risk is transferred from the seller to the buyer, decreasing exposure to potential losses during transit.

How Does FCA Benefit Sellers?

Export Process Simplified: Sellers have a defined responsibility to deliver items at a specific location, which streamlines the export process.
Reduced Liability: Once the items are delivered to the carrier, the seller’s liability is reduced, lowering risk.
Global Accessibility: FCA | Free Carrier is appropriate for all forms of transportation, making it useful for sellers in a variety of industries.

Is FCA Suitable for Small Businesses?

Yes, FCA Incoterms 2020 is appropriate for companies of all sizes. Small businesses, like larger enterprises, can benefit from the flexibility and cost-saving benefits it provides.

Does FCA Apply to Both International and Domestic Trade?

FCA can be used for both domestic and international trading. Because of its versatility, it can be used for a wide range of transactions.

What Documents Are Associated with FCA?

Common FCA documents include the commercial invoice, bill of lading, packing list, and any other paperwork required by the buyer or importing country.

Can FCA Be Combined with Other Incoterms?

When dealing with complex transactions, FCA can be paired with other Incoterms. It is critical to precisely outline each party’s responsibilities in the contract.

FCA Examples

Here are some examples in which FCA might be used:

  • An Indian merchant is selling things to a buyer in the United Kingdom. The buyer wishes to arrange their shipping from India to the United Kingdom. The products are delivered to the buyer’s designated carrier at the seller’s warehouse in India.
  • A Chinese seller is attempting to sell things to a Canadian buyer. The buyer wants to clear the products for import into Canada through their freight forwarder. The items are delivered to the buyer’s designated freight forwarder at their warehouse in China by the vendor.

FAQs Free Carrier (FCA):

  1. Q: What is the difference between FCA and FOB?

    Ans: According to the FCA, the seller is liable for placing the items onto the carrier’s mode of transportation. The seller is responsible for loading the items onto the ship under FOB.

  2. Q: Who is responsible for the cost of insurance under FCA?

    Ans: According to FCA, the buyer is responsible for the expense of insurance.

  3. Q: What if the goods are damaged or lost after they have been loaded onto the carrier’s means of transport?

    Ans: The buyer is fully responsible for any loss or damage to the goods once they have been loaded onto the carrier’s vehicle.


Finally, FCA – Free Carrier Incoterms 2020 provides a win-win situation for both buyers and sellers in international trade. Buyers get greater control and save money, while sellers profit from streamlined processes and decreased liability. Small enterprises and large corporations alike can benefit from FCA. Understanding how to use FCA properly can result in more efficient transactions, lower risks, and more profits for all parties involved.
So, whether you’re a buyer looking for greater control or a seller looking for greater simplicity in your international trading endeavors, FCA Incoterms 2020 should be on your radar. Accept the opportunity it provides and watch your worldwide commerce operations flourish.

If you discover an error in the “Why will FCA – Free Carrier Incoterms 2020 be useful for buyers and sellers?” information provided to us, please notify us immediately via the comment box and email; if the information provided by you is correct, We will change it.

If you enjoyed this article, please share it with your friends. Please visit Aayat Niryat Mitra for more information on this and other topics. Thank you for stopping by.

Leave a comment