FCAFree Carrier

FCA (Free Carrier) means the seller clears the goods for export and hands them to the carrier nominated by the buyer at a named place; risk passes on handover, and the buyer arranges and pays the main carriage. It works for any mode, including containers.

Summarised from the Incoterms® 2020 rules. Not legal advice.Updated 6 October 2026

Where FCA hands over

The orange marker is where risk passes to the buyer. Blue bars are the seller's, yellow the buyer's.

FCA at a glance

Transport: Any modeIncluding containers and multimodal
Risk passes: Handed to carrier
Main carriage: Buyer paysand nominates the carrier
Insurance: No obligationthe party at risk usually insures
Delivery point: At the seller's premises: when loaded on the buyer's collecting vehicle. Anywhere else: when the goods, still on the seller's vehicle and ready for unloading, are placed at the carrier's disposal.

FCA responsibilities
Job	Who
Export clearance	Seller
Loading at origin	Seller if at seller's premises
Main carriage	Buyer
Insurance	No obligation
Unloading at destination	Buyer
Import clearance and duties	Buyer

When to use FCA

Use FCA when

Containers, air freight, road and rail
The buyer controls and pays the main freight
You can clear export and hand over at a terminal or your door

Avoid FCA when

The named place is vague, such as a whole city or country
A bank needs an on-board bill of lading and the 2020 option is not agreed
The buyer cannot nominate a carrier in time

Common FCA mistakes

Vague named place

‘FCA China’ is not enough. Name the exact address or terminal, because it decides who loads, who unloads and where risk passes.

Letters of credit and on-board bills

Since 2020 the parties can agree that the buyer instructs its carrier to issue an on-board bill of lading to the seller, which helps when a bank requires one.

Using FOB for containers instead

Container goods are handed over at a terminal days before loading. FCA matches that; FOB leaves the seller carrying risk for cargo it no longer controls.

FCA beside its neighbours

FOB is for goods loaded directly onto a ship. For containerised cargo FCA is the rule designed for the job. Read about FOB.

EXWEx WorksRisk passes: seller's premises FCAFree CarrierRisk passes: handed to carrier FASFree Alongside ShipRisk passes: alongside ship

All eleven rules

E rulesDeparture

EXWEx WorksAny mode of transport

F rulesMain carriage unpaid

FCAFree CarrierAny mode of transport FASFree Alongside ShipSea and inland waterway FOBFree On BoardSea and inland waterway

C rulesMain carriage paid

CFRCost and FreightSea and inland waterway CIFCost, Insurance and FreightSea and inland waterway CPTCarriage Paid ToAny mode of transport CIPCarriage and Insurance Paid ToAny mode of transport

D rulesArrival

DAPDelivered at PlaceAny mode of transport DPUDelivered at Place UnloadedAny mode of transport DDPDelivered Duty PaidAny mode of transport

Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). CartonMath is not affiliated with or endorsed by the ICC. This is a plain-language summary; the full rules are published by the ICC and the contract wording governs.

Common questions

What does FCA mean?

When does risk pass under FCA?

At the seller's premises: when loaded on the buyer's collecting vehicle. Anywhere else: when the goods, still on the seller's vehicle and ready for unloading, are placed at the carrier's disposal.

Who pays the main freight under FCA?

The buyer arranges and pays the main carriage.

Who pays import duties under FCA?

The buyer clears the goods for import and pays any duties and taxes under FCA.

Can FCA be used for container shipments?

Yes. FCA works for any mode of transport, including containers and multimodal shipments.