In the previous post we explained the EXW Incoterm, and noted that it was the one with the most responsibilities and costs for the buyer. The next Incoterm we are going to explain is the FCA (Free Carrier), which consists of the seller’s obligation to deliver the goods to an agreed place in the country of origin, taking responsibility for them, bearing the costs up to that moment and carrying out the export customs formalities.
One advantage we have over EXW is that we can arrange for delivery anywhere in the country of origin. So if we have a reliable forwarder in the country of origin and its warehouses are the place of delivery, we can avoid problems that may arise from ignorance of language, culture and customs of the country from which we are importing. The FCA Incoterm must be followed by the place agreed by the buyer and seller and can be used in any mode of transport, although for maritime transport there are others that are more appropriate, which we will see later.
Let’s imagine that we import a product from China and the Incoterm we use in our international sale and purchase operation is the FCA Warehouses of the forwarder in Shenzhen (China). The seller will take care of loading the goods on the truck, inland transport and unloading at the forwarder’s warehouses and export customs formalities, and will then pass on the responsibility and costs to the buyer, who will take care of any inland transport to the airport in the country of origin, international transport, unloading, loading and inland transport in his country to the final destination.
We hope you have found it helpful and do not hesitate to ask any questions you may have.
Below is a list of the entries:
– EXW
– FCA
– FAS
– FOB
– CFR
– CIF
– CPT
– IPC
– DAT
– DAP
– DDP
If you want to import from China, do not hesitate to contact us without obligation.
