01Obligations under FCA
Seller: Export clearance, loading onto the first carrier at the named place, commercial documents.
Buyer: Main carriage, import clearance, insurance, on-carriage.
The precise split of the 10 obligation pairs (A1–A10 / B1–B10) is binding under the ICC Incoterms 2020 rules.
02Risk and cost transfer
Risk transfer: Upon handover to the buyer's nominated carrier at the named place.
Cost transfer: Seller pays up to handover incl. export clearance; buyer thereafter.
For several Incoterms, the risk and cost points do not coincide — this is the biggest source of misunderstanding in international trade. Cargo insurance should always be aligned with the risk transfer point, not the cost transfer point.
03When to use FCA
The most used Incoterm in containerised trade since the 2020 revision. FCA is the clean alternative to FOB because handover happens at the terminal or depot rather than at ship's rail, which the seller never actually controls for containerised cargo.
Before choosing, verify: Can both parties operationally handle customs, carriage and insurance in the respective country? Are there tax implications (e.g. VAT under DDP)? Which documents (commercial invoice, certificate of origin, B/L, CMR, AWB) are required?
04Common pitfalls
1) Mode mismatch: FCA works for all modes — but always specify the named place precisely (city, country, optionally a terminal code) on the commercial invoice.
2) On-board notation: For sea Incoterms, a correct on-board notation on the B/L is critical for letter-of-credit settlement.
3) Insurance cover: Explicitly agree ICC A / B / C and the sum insured.
Frequently asked questions
What does FCA mean in practice?
Seller hands over export-cleared goods to the carrier nominated by the buyer. Applicable to any mode of transport. Risk transfer: Upon handover to the buyer's nominated carrier at the named place.
Who pays cargo insurance under FCA?
No mandatory insurance. The buyer bears the risk from the transfer point onwards and should insure accordingly.
Is FCA suitable for containers?
Yes. The term applies to all modes, including container transport.