Where does risk pass under FCA?

When the goods are handed to the buyer’s carrier at the named place.

Who pays the freight under FCA?

The buyer pays the main carriage. The seller pays export clearance and getting the goods to the named place; loading onto the ship or aircraft is the buyer’s.

Who pays import duties under FCA?

The buyer. Import clearance, duties and taxes are the buyer’s under every rule except DDP.

Can FCA be used for containers or air freight?

Yes. FCA works for any mode of transport, including containers, air, road and rail.

Can I get an on-board bill of lading under FCA?

Since Incoterms 2020, yes, if the parties agree it: the buyer instructs its carrier to issue an on-board bill of lading to the seller once the goods are loaded. It exists for letters of credit, which usually ask for one. The seller’s risk still ends at the handover at the named place, not at loading.

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INCOTERMS®FCAIncoterms 2020

FCA: Free Carrier

F-group rule · any mode of transport · Incoterms® 2020

FCA (Free Carrier) means the seller clears the goods for export and hands them to the carrier the buyer has nominated, at the named place. Risk passes at that handover; the buyer pays the main freight and everything after it.

Risk passes: When the goods are handed to the buyer’s carrier at the named place.
Main freight: Paid by the buyer
Insurance: Neither side is obliged to insure — agree who does
Customs: Export: Seller · Import: Buyer

Who pays what under FCA

Export clearance	Seller
Carriage to port / terminal	Seller Up to the named place. If the named place is the seller’s own premises, there is no carriage before handover.
Loading onto main carriage	Seller At the seller’s premises the seller loads the buyer’s vehicle. At a terminal or warehouse the goods arrive on the seller’s vehicle not unloaded, and loading onto the ship or aircraft is the buyer’s.
Main carriage (freight)	Buyer
Insurance	Neither obliged
Unloading at destination	Buyer
Import clearance	Buyer
Duties and import taxes	Buyer

How to write FCA on your documents

The rule is only complete with its named place. The place of handover: the seller’s premises (the seller loads the buyer’s truck) or another place such as a container terminal or the forwarder’s warehouse (the goods arrive on the seller’s vehicle ready for unloading).

FCA Busan New Port CY, Korea — Incoterms® 2020

Write it the same way on the quotation, the proforma, the commercial invoice and the shipping instructions — a different place on one document is a different deal.

Use FCA when

Containers and air freight — the goods leave the seller at a terminal or warehouse, not once on board the ship.
The buyer has a forwarder or contract rate and wants to control the main carriage.
You were going to write EXW but the buyer cannot clear export in your country.

Think twice when

The named place is vague («FCA Korea»): it decides who loads and where risk passes, so name the address or terminal.
A letter of credit asks for an on-board bill of lading and the contract does not use FCA’s 2020 option for the buyer to instruct its carrier to issue one to the seller — agree it in the contract.

What people get wrong about 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 about FCA

What does FCA mean in shipping?: FCA (Free Carrier) means the seller clears the goods for export and hands them to the carrier the buyer has nominated, at the named place. Risk passes at that handover; the buyer pays the main freight and everything after it.
Where does risk pass under FCA?: When the goods are handed to the buyer’s carrier at the named place.
Who pays the freight under FCA?: The buyer pays the main carriage. The seller pays export clearance and getting the goods to the named place; loading onto the ship or aircraft is the buyer’s.
Who pays import duties under FCA?: The buyer. Import clearance, duties and taxes are the buyer’s under every rule except DDP.
Can FCA be used for containers or air freight?: Yes. FCA works for any mode of transport, including containers, air, road and rail.
Can I get an on-board bill of lading under FCA?: Since Incoterms 2020, yes, if the parties agree it: the buyer instructs its carrier to issue an on-board bill of lading to the seller once the goods are loaded. It exists for letters of credit, which usually ask for one. The seller’s risk still ends at the handover at the named place, not at loading.

The documents where FCA is written

Commercial invoice template
Customs and the buyer’s bank read the Incoterm here; it decides which costs belong in the invoice value.
Proforma invoice template
The buyer opens a letter of credit or pays a deposit on these terms — the same rule must follow through.
Quotation template
A price means nothing without its rule: «USD 12.50 FOB Busan» and «USD 12.50 DAP Dallas» are different offers.

Compare FCA with

FCA vs CFR FCA vs CIF FCA vs CIP FCA vs CPT FCA vs DAP FCA vs DDP FCA vs DPU FCA vs EXW FCA vs FAS FCA vs FOB

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.