Last week, I made a post on the 8 major incoterms you must know as an international trader. The FCA is one of them that was mentioned and briefly commented upon.
FCA (Free Carrier)
Here, the seller clears goods for export and delivers them to a designated named place chosen by the buyer. The goods may be delivered to a carrier chosen by the buyer. This Incoterm, in many respect, has replaced FOB in modern usage. The critical point where risk passes from buyer to seller ranges from when goods are loaded aboard a vessel to the designated named place. the designated place affects the obligation of loading and unloading.
The seller is responsible for loading the items onto the buyer’s carrier if delivery takes place at the seller’s premises or any other place that is under the seller’s control. The buyer is responsible for both unloading and loading the items onto their own carrier if delivery takes place at any other location; however, the seller is considered to have delivered the goods after their vehicle has arrived at the designated location.
What all this oyinbo means is that, if you buy goods from a supplier in china under the FCA term, if the goods are to be delivered at our warehouse in china, the supplier/seller is responsible for loading and unloading because the designated named place is at sellers premises.
If however, you chose to ship to Lagos, and your designated named place is at Apapa port, then the goods are considered delivered once the goods arrive at Apapa port. The buyer is responsible for unloading and loading to his own carrier and delivering to his destination.
Advantages and Disadvantages of FCA
