Are you wondering what FCA incoterms are and what to do with them when you send a package? We are happy to explain it to you.
Chantal has been writing about logistics topics for almost two decades and has worked for major international carriers.
FCA Incoterms is a commonly used term in international trade and is used for road transport and air freight. FCA is an international trade term (incoterm) that stands for "Free Carrier." FCA is a term used to define the responsibility and the costs for the transport of goods between the seller and the buyer.
The meaning of FCA? It's an important agreement about the costs and responsibilities that is recorded in the commercial invoice.
With FCA, the seller is responsible for loading the goods onto the transport vehicle designated by the buyer, such as a truck or a ship, at an agreed place, such as the seller's factory or warehouse. Once the goods are loaded, the risk and the costs of transport transfer to the buyer. The buyer is then responsible for the further transport of the goods to the final destination, including any customs procedures and costs.
The FCA Incoterms 2020 are the latest version of the international trade term FCA. The Incoterms 2020 were drawn up by the International Chamber of Commerce (ICC) and have been in effect since January 1, 2020. Below are the key features of the FCA Incoterms 2020:
Delivery: Under FCA Incoterms 2020, the seller must deliver the goods to the carrier designated by the buyer at an agreed place, such as a warehouse, factory, port, or airport.
Risk Transfer: The risk of loss or damage to the goods transfers from the seller to the buyer at the moment the goods are delivered to the carrier at the agreed place.
Insurance: It is the responsibility of the buyer to insure the goods during transport from the moment of delivery.
Customs Declaration: The seller must fulfill the customs formalities required for the export of the goods, while the buyer is responsible for the import formalities.
Costs: The seller is responsible for the costs of loading the goods onto the transport vehicle, while the buyer is responsible for the costs of transport, insurance, and customs formalities.
Packaging: The seller must package and label the goods in the usual manner, ensuring they can be transported safely and easily.
Communication: It is important for the seller and buyer to communicate clearly about the details of the delivery, including the agreed place, transport method, delivery date, and other relevant information.
The FCA Incoterms 2020 apply only to the delivery of goods and not to other aspects of the trade transaction, such as payment terms or transfer of ownership. Therefore, it is important to read the sales agreement carefully and apply the relevant Incoterm correctly.
Want to send a package and mention Incoterms? This is done on the commercial invoice, also known as a commercial invoice or trade invoice. You can make this choice when booking your shipment on our shipping platform.
Also, mention a (correct) goods code, or HS code, on the customs invoice? This allows customs to easily and correctly determine the amount of import duties and other import taxes. Import duties are always charged to the recipient of your shipment by default. We have also created a tool in MyParcelParcel that allows you to easily search for HS codes based on a description. On this page, you see how the new HS code tool from ParcelParcel works.
The Incoterms describe the rights and obligations of buyer and seller in international transport. These agreements describe who pays import duties and how goods are delivered. They are established by the International Chamber of Commerce, or International Chamber of Commerce (ICC). This provides clarity about risks and who arranges what. As of January 1, 2020, there are 11 Incoterms:
EXW - Ex Works
FCA - Free Carrier
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid To
DAT - Delivered at Terminal
DAP - Delivered at Place
DDP - Delivered Duty Paid
FAS - Free Alongside Ship
FOB - Free on Board
CFR - Cost and Freight
CIF - Cost Insurance and Freight
More about DDP, DAP, and the difference between DDP and DAP can be found on our website. Want to know more about international shipping? Take a look at our knowledge base. Would you like to speak with our logistics specialists? Contact us via live chat. Or by calling 085 877 16 56 (Netherlands) or 038 087 099 (Belgium). We're here to help!
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