Скачать или смотреть Incoterms 2020 FCA: Spotlight on Free Carrier

There are 11 Incoterms 2020 rules. These globally-recognized trade terms, published by the International Chamber of Commerce, determine how costs and risks are split between buyers and sellers conducting international transactions, and when the risk or liability for the goods transfer from the seller to the buyer. This video explains the Incoterms rule FCA, or Free Carrier.

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Free Carrier Responsibilities and Risk

Under FCA, the seller loads the goods on the buyer's transport at the seller’s premises, or the seller delivers them to another named place.

Most often, the buyer hires transportation to pick the goods up at the seller’s warehouse. The seller must load the goods on the buyer’s transport, at which point the risk for the goods transfers to the buyer.

Alternatively, seller and buyer may agree to have the seller transport the goods to a place other than the seller’s warehouse, like a freight forwarder’s warehouse or a carrier’s terminal. The risk or liability for the goods transfers from the seller to the buyer when the goods are made available at the named place. The buyer is responsible for unloading the goods from the seller’s transport.

In both cases, the seller should package the goods appropriately or as specified in the agreement. The seller is also responsible for export clearance.

FCA can be used for any mode of transport—air, courier, truck, rail, vessel or multi-modal shipments.

Free Carrier and Routed Export Transactions

Most Incoterms experts argue that FCA is the best Incoterm to use when the buyer is arranging the main international transportation. And sellers often choose it because they think it takes less effort on their part.

FCA is certainly a better choice than Ex Works – which many U.S. companies like to use – but it puts responsibility for export clearance on the seller. That’s not necessarily a bad thing, but it can put the use of FCA in conflict with U.S. Foreign Trade Regulations.

The FTR calls exports where the buyer arranges the international transportation a routed export transaction. It requires the buyer to give written authorization to a U.S. party to file EEI through AES.

Free Carrier and Bills of Lading

Under an F-group rule, the “at a named place” is on the seller’s side, but the buyer hires the main carrier and freight forwarder. The seller does not control shipments under the F term, so the freight forwarder and carrier have no obligation to the seller.

This has caused problems in the past when selling under a letter of credit, because international carriers would have no reason to provide the bill of lading to the seller who would typically need it to get paid under a letter of credit.

With the latest set of Incoterms– the Incoterms 2020 rules – the buyer can instruct its carrier to issue a bill of lading with an on-board notation to the seller, so that the seller can satisfy the terms of a letter of credit.

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Chapters
00:00 Introduction
00:45 FCA Responsibilities and Risk
01:52 Free Carrier and Routed Export Transactions
02:40 Free Carrier and Bills of Lading
03:25 Incoterms Chart of Responsibilities

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