DDP vs FCA: who pays what

DDP is Delivered Duty Paid. FCA is Free Carrier. Incoterms 2020.

The difference that matters

Full cost split

Cost blockDDPFCA
Export clearanceSellerSeller
Carriage to port / terminalSellerSeller
Loading onto main carriageSellerSeller
Main carriage (freight)SellerBuyer
InsuranceNeither obligedNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceSellerBuyer
Duties and import taxesSellerBuyer
Risk passesAt the named destination, ready for unloading, after import clearance.When the goods are handed to the buyer’s carrier at the named place.
Transport modeAny modeAny mode

What people get wrong

DDP

Many countries will not let a non-resident seller act as importer of record, and unrecoverable import VAT quietly becomes a cost.

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 DDP and FCA?
They split 3 cost blocks differently. main carriage (freight) falls to the seller under DDP and the buyer under FCA; import clearance falls to the seller under DDP and the buyer under FCA; duties and import taxes falls to the seller under DDP and the buyer under FCA.
Where does risk pass under DDP?
At the named destination, ready for unloading, after import clearance.
Where does risk pass under FCA?
When the goods are handed to the buyer’s carrier at the named place.
Can DDP and FCA both be used for container shipments?
Yes. Both work for any mode of transport, including containers, air and road.

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 DDPCFR vs FCACIF vs DDPCIF vs FCACIP vs DDPCIP vs FCACPT vs DDPCPT vs FCA

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.