FCA Incoterms 2020 — Complete Logistics Guide

FCA (Free Carrier) is one of the 11 delivery terms defined under Incoterms 2020 rules published by the International Chamber of Commerce (ICC). FCA is the most widely recommended delivery term for international trade by the ICC. Under FCA terms, the seller delivers goods, cleared for export, to the carrier or another person nominated by the buyer at a named place. If delivery occurs at the seller's premises, the seller is responsible for loading; if delivery occurs at any other place, the seller is not responsible for unloading from the collecting vehicle. FCA can be used for all transport modes — road, sea, air, rail, and multimodal shipping. Brosan Logistics provides comprehensive logistics solutions for both sellers and buyers operating under FCA terms.

The abbreviation FCA stands for 'Free Carrier' in English. 'Free' indicates that the seller delivers goods clear of all costs and risks to a specified point; 'Carrier' refers to the transport company, freight forwarder, shipping agent, or any person nominated by the buyer to receive the goods. In price quotations, FCA is stated as 'FCA [named place of delivery]' — for example, 'FCA Istanbul Factory' (seller loads) or 'FCA Istanbul Port' (seller delivers but does not load). This distinction is critically important because it determines who bears the loading responsibility and exactly where risk transfers from seller to buyer.

The Incoterms 2020 revision introduced a significant enhancement to FCA: the Bill of Lading (B/L) notation option. In previous versions, obtaining an on-board B/L under FCA was problematic because the carrier typically would not issue it until goods were loaded on the vessel — after the FCA delivery point. Incoterms 2020 now allows the parties to agree that the buyer will instruct its carrier to issue an on-board B/L to the seller, who then forwards it to the buyer. This change has greatly facilitated the use of FCA in Letter of Credit (L/C) transactions. The ICC explicitly recommends FCA over EXW for international trade because under FCA, the export customs declaration is filed by the seller — the party best positioned to do so in their own country.

Under FCA, the seller's obligations are significantly broader than under EXW. Core seller responsibilities include: Goods preparation — the seller must manufacture or procure conforming goods and make them available at the agreed delivery point. Export customs clearance — the seller must complete export formalities including export declarations, certificates of origin, EUR.1 or A.TR movement certificates, and all required export documentation. Loading (premises delivery) — if the named place is the seller's premises, the seller must load goods onto the buyer's collecting vehicle. Notification — the seller must notify the buyer that goods have been delivered or that the carrier has failed to collect. Packaging — the seller must provide transport-suitable packaging. Documentation — the seller must provide commercial invoices, export documents, and if agreed, arrange for the carrier to issue an on-board B/L.

Under FCA, the buyer assumes responsibility from the point of delivery to the carrier. Buyer obligations include: Nominating the carrier and contracting for main carriage. Main carriage — organizing and paying for international freight by road, sea, air, or rail. Insurance — arranging cargo insurance at the buyer's discretion (not mandatory under FCA). Import customs clearance — customs duties, VAT, and import procedures in the destination country. Unloading and final delivery at destination. Brosan Logistics manages the complete logistics chain for companies purchasing under FCA terms — from carrier nomination to import clearance and final delivery.

Under FCA, costs are distributed more evenly between seller and buyer compared to EXW. The seller covers production, packaging, export customs clearance, and loading costs (at premises delivery), while the buyer pays for main carriage, insurance, import clearance, and final delivery. The table below illustrates the typical cost distribution in an FCA shipment.

Under FCA, the risk transfer point varies based on the named place of delivery. Scenario 1 — Delivery at seller's premises: Risk transfers when goods are loaded onto the buyer's carrier's vehicle. The seller bears loading risk. Scenario 2 — Delivery at another place (port, warehouse, terminal): Risk transfers when goods are placed at the carrier's disposal on the seller's vehicle, ready for unloading. The seller is not responsible for unloading. This dual-scenario structure is critical and the named place must be clearly specified in the contract. Compared to EXW, FCA provides a later risk transfer point, creating a safer framework for the buyer.

FCA is the ICC's most recommended Incoterms 2020 rule for international trade. Its balanced responsibility allocation, export clearance security, and flexible delivery point options offer clear advantages for both parties. However, buyers must manage main carriage organization, and ambiguity in the named place can lead to disputes.

FCA, EXW, and FOB are among the most commonly used delivery terms. Under EXW, the seller has virtually no responsibility; under FCA, the seller handles export clearance and loading. FOB applies only to sea freight and transfers risk at the ship's rail. The ICC recommends FCA over FOB for container shipments because containers are typically delivered to the terminal, not loaded on board the vessel at the FCA delivery point.

FCA is ideal for the vast majority of international trade scenarios. Use FCA when: the buyer wants to use their own freight forwarder network; container shipping is involved (FCA recommended over FOB); Letter of Credit payments require an on-board B/L (Incoterms 2020 B/L option); the seller has export customs clearance capability. Consider alternatives when: the seller should provide full door-to-door service (use DAP or DDP); only bulk sea cargo is shipped and ship's rail risk transfer is desired (use FOB). Brosan Logistics offers professional FCA logistics services across all transport modes.

Example 1 — Automotive Parts Import from Italy to Turkey: A Turkish manufacturer orders engine components from a Milan supplier. The agreement is 'FCA Milan Factory.' The seller completes export clearance and loads goods onto Brosan Logistics' truck. Risk transfers at loading completion. Brosan Logistics handles road freight to Istanbul, Turkish import clearance, and factory delivery. Example 2 — Textile Export from Turkey to Germany: An Istanbul textile company exports a container to Germany. The agreement is 'FCA Istanbul Ambarli Port.' The seller delivers the container to Ambarli and completes export clearance. The container is handed to the buyer's carrier at the terminal. From this point, ocean freight, Hamburg port charges, and German import clearance are the buyer's responsibility.

FCA (Free Carrier) is the ICC's top recommended Incoterms 2020 rule for international trade. By assigning export clearance to the seller, FCA eliminates the biggest weakness of EXW and offers flexibility across all transport modes. The Incoterms 2020 B/L option has made FCA even stronger for L/C transactions. Brosan Logistics recommends FCA as the default choice for international shipments. Always specify the named place of delivery clearly in your contract, and work with an experienced logistics partner. Contact the Brosan Logistics expert team for free FCA consultation.