CIF vs FCA: who pays what

CIF is Cost, Insurance and Freight. FCA is Free Carrier. Incoterms 2020.

The difference that matters

Full cost split

Cost blockCIFFCA
Export clearanceSellerSeller
Carriage to port / terminalSellerSeller
Loading onto main carriageSellerSeller
Main carriage (freight)SellerBuyer
InsuranceSellerNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Duties and import taxesBuyerBuyer
Risk passesWhen the goods are loaded on board at origin — same as CFR.When the goods are handed to the buyer’s carrier at the named place.
Transport modeSea / inland waterwayAny mode

What people get wrong

CIF

The required cover is the minimum level, not all-risks. Buyers who assume they are fully covered find out at claim time.

FCA

The named place decides who loads. FCA at the seller’s premises means the seller loads; FCA at a terminal means they do not.

Questions

What is the main difference between CIF and FCA?
They split 2 cost blocks differently. main carriage (freight) falls to the seller under CIF and the buyer under FCA; insurance falls to the seller under CIF and the none under FCA.
Where does risk pass under CIF?
When the goods are loaded on board at origin — same as CFR.
Where does risk pass under FCA?
When the goods are handed to the buyer’s carrier at the named place.
Can CIF and FCA both be used for container shipments?
FCA works for any mode of transport. CIF is written for sea and inland waterway transport only.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs CIFCFR vs FCACIF vs CIPCIF vs CPTCIF vs DAPCIF vs DDPCIF vs DPUCIF vs EXW

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.