# FCA, Free Carrier (Incoterms 2020)

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.

- Transport: any mode
- Delivery and risk transfer: 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.
- Seller's costs run to: Handed to carrier

## 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 |

## Common 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 or FOB?

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

Incoterms® is a trademark of the International Chamber of Commerce; CartonMath is not affiliated with the ICC.

## FAQ

**What does FCA mean?**
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.

**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.

Source page: https://cartonmath.com/incoterms/fca/
Updated: 2026-10-06
Publisher: CartonMath (https://cartonmath.com)