Meaning
Standardized international commercial terms define the precise point where seller risk, cost and transport obligations transfer to the purchasing entity. Under FCA, designated as free carrier, the seller completes delivery once export-cleared goods are handed over to the carrier nominated by the buyer at a specified inland terminal, port or manufacturing premises. The provision governs domestic loading, preliminary carriage and export clearance documentation.
Responsibility terminates the moment the nominated freight forwarder accepts custody of the cargo.
Risk Transfer
Contractual risk shifts from seller to buyer immediately upon physical handoff at the named loading dock or carrier terminal. If delivery occurs at the seller’s production facility, the seller remains responsible for loading the cargo onto the transport vehicle provided by the buyer’s carrier. When the agreed transfer occurs at another location, the seller delivers the freight when ready for unloading on the arriving conveyance.
A failure by the buyer to secure carrier space on schedule leaves storage charges and transit delay risks entirely on the buyer’s account. Delivery receipts signed by the transport driver provide formal legal proof of the risk transfer.
Freight Allocation
Arranging main international carriage, freight insurance and destination customs import clearance falls completely within the buyer’s procurement scope. Specifying FCA allows purchasing teams to consolidate shipments from multiple regional manufacturing sites into single maritime containers or dedicated air charters. Direct oversight of shipping schedules reduces transit delays.
Export Compliance
Securing official export licenses and completing customs filing documents remains the sole legal duty of the supplying facility. Suppliers must provide commercial invoices, packing lists and standard transport documentation required to clear origin customs authorities. If customs officials demand physical cargo inspections at the origin terminal, the supplier must facilitate clearance before the handoff becomes legally binding.
