EXW vs FCA: who pays what

EXW is Ex Works. FCA is Free Carrier. Incoterms 2020.

The difference that matters

Full cost split

Cost blockEXWFCA
Export clearanceBuyerSeller
Carriage to port / terminalBuyerSeller
Loading onto main carriageBuyerSeller
Main carriage (freight)BuyerBuyer
InsuranceNeither obligedNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Duties and import taxesBuyerBuyer
Risk passesWhen the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.When the goods are handed to the buyer’s carrier at the named place.
Transport modeAny modeAny mode

What people get wrong

EXW

The buyer is formally responsible for export clearance in their supplier’s country, which they often cannot legally do. FCA usually fixes this.

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 EXW and FCA?
They split 3 cost blocks differently. export clearance falls to the buyer under EXW and the seller under FCA; carriage to port / terminal falls to the buyer under EXW and the seller under FCA; loading onto main carriage falls to the buyer under EXW and the seller under FCA.
Where does risk pass under EXW?
When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.
Where does risk pass under FCA?
When the goods are handed to the buyer’s carrier at the named place.
Can EXW 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 EXWCFR vs FCACIF vs EXWCIF vs FCACIP vs EXWCIP vs FCACPT vs EXWCPT 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.