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Trade Knowledge

Trade Terms-FCA(FREE CARRIER)

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FREE CARRIER(... delivered place)-The carrier(... designated place) means that the seller must place the goods subject to export clearance to the supervision of the carrier designated by the buyer at the designated place or place within the specified delivery period specified in the contract. And bear all costs and risks of loss of or damage to the goods until they are placed under the supervision of the carrier. The buyer must conclude, at its own expense, a contract of carriage for the shipment of goods from the designated place or place and give full notice to the seller of the name of the carrier concerned, the time and place at which delivery is required; All expenses and risks after the burden is paid to the carrier; Responsible for the collection of the goods and payment of the price as stipulated in the contract.
FCA terminology applies to various modes of transport, especially container transport and multimodal transpoRTAtion.
According to the 1990 General Principles, under the FCA terminology, the main obligations of the buyer and the seller are as follows:
(1) the main obligations of the seller:
1. Responsible for delivering goods conforming to the contract to the carrier designated by the buyer within the period of delivery specified in the contract, at the designated place or place;
2. Responsible for processing the export of goods, obtaining an export licence or other authorization;
3. bear all costs and risks of the goods prior to delivery to the carrier;
4. Responsible for providing commercial invoices and the usual documents evidencing the delivery of the goods to the carrier. If the seller and the seller agree to use electronic communications, all documents can be replaced by EDI information with equal effect.
(2) the main obligations of the buyer:
1. Responsible for the payment of the price as stipulated in the contract;
2. Responsible for the conclusion of the contract of carriage, payment of freight and adequate notice to the seller of the name of the carrier and the time and place of delivery;
3. Obtain import licences or other authorizations on the basis of risk and expense, and carry out all customs formalities for the import of goods and, if necessary, transit through another State;
4. bear all costs and risks of the goods after delivery to the carrier;
5. Receive the goods delivered by the seller in accordance with the terms of the contract and accept documents conforming to the contract.
In adopting this term, the following points should be noted:
1. The point of delivery and the point of risk transfer are the designated place or place of supervision of the goods by the buyer's designated carrier. The designated place or location may be a railway terminal, an airport of embarkation, a freight terminal, a container terminal or dump, a multi-purpose freight terminal or a similar point of receipt. If the carrier delivers the loaded container to the place where the seller receives the goods, the point of delivery and the point of risk transfer will be at the gate of the factory or warehouse where the seller is located.
2. Under FCA terminology, the buyer must conclude the contract of carriage at its own cost, but if the seller can assist in achieving better results, the seller can assist in concluding the contract of carriage, but the related costs and risks are borne by the buyer.
3. When using FCA terminology, most of the goods are collectivized or grouped, for example, in containers or pallets, and the seller should therefore consider the cost of assembling the goods and include it in the price.
Related Product tags: trade terms,fca,lusty,home,limited,FREE CARRIER



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