FCA (Free Carrier) is the Incoterms 2020 rule under which the seller, having completed export customs clearance, delivers the goods to the carrier nominated by the buyer at the agreed place. If delivery is at the seller's premises, loading is the seller's responsibility; if it is at another place, unloading is the buyer's. Risk passes to the buyer on delivery, and the rule is suitable for any mode of transport.
Where does delivery take place under FCA?
The key point of FCA is the place of delivery; questions such as who loads and when risk passes all depend on this choice. Incoterms 2020 defines two situations:
| Place of delivery | What the seller does | When risk passes |
|---|---|---|
| Seller's premises (factory, warehouse) | Loads the goods onto the vehicle sent by the buyer | When loading is completed |
| Another place (forwarder's warehouse, container terminal, airport) | Takes the goods there in its own vehicle and places them at the carrier's disposal ready for unloading | On delivery on the vehicle, before unloading begins |
In the second case, unloading and everything after it are the buyer's responsibility. If only a city name is written in the contract, for example "FCA Istanbul", which situation applies becomes disputed. The delivery address should be stated clearly.
What do the seller and the buyer take on?
- Seller: Export packaging, marking, export licences and the export customs declaration, transport to the place of delivery, proof of delivery.
- Buyer: The main contract of carriage and freight, notifying the seller of the carrier's name and delivery time, transit and import formalities, destination country duties and taxes.
- Insurance: Neither party has an obligation. Since risk lies with the buyer after delivery, insurance is usually taken out by the buyer.
If the buyer does not send the carrier on time or fails to give notice, risk passes to the buyer from the agreed delivery date. Where risk passes under each rule is compared in the transfer of risk under Incoterms entry.
What changed in the 2020 version?
Exporters selling container cargo on FCA terms long faced a problem: because the goods were delivered at the terminal, the seller did not have a bill of lading with a "shipped on board" notation. In sales under letters of credit, however, the bank often required this notation. Articles A6/B6 of Incoterms 2020 provide that, if the parties so agree, the buyer instructs the carrier to issue an on-board bill of lading to the seller after loading. This allows the seller to present complete letter of credit documents. The carrier is not bound by this instruction; in practice it should be confirmed separately in the freight agreement.
What sets FCA apart from EXW and FOB?
Under EXW, export customs clearance is the buyer's responsibility; in practice, however, it is difficult for a foreign buyer to file an export declaration in Türkiye, and it creates problems in documenting the VAT exemption. FCA leaves this burden with the seller; details are in the difference between EXW and FCA entry. FOB, on the other hand, works only for sea transport with delivery on board the vessel. When a container is dropped at the terminal days in advance, FOB keeps the seller at risk for a period it cannot control; for this reason, the ICC recommends FCA for container cargo.
How is it written in the contract?
- Rule and version: "FCA … Incoterms® 2020".
- Exact place of delivery: premises address or terminal name.
- Responsibility for loading is expressly confirmed for delivery at the seller's premises.
- Where required, the on-board bill of lading option and who bears its costs.
- The buyer's notice period for nominating the carrier.
Common mistakes
- Leaving the place of delivery at city level.
- Not discussing who will load when the buyer's truck arrives.
- Leaving the export declaration until after delivery and keeping the vehicle waiting.
How does Voltim Global support this?
For an exporter selling on FCA terms, the export declaration is prepared according to the delivery time; for an importer buying on FCA terms, international road transport is planned from the seller's premises. How the place of delivery and loading responsibility are written in the contract is reviewed as part of regulatory consultancy.