FCA - Free Carrier

Question 1

When does the delivery happen in FCA?

Answer 1

There are two scenarios. First, when the named place is the seller’s premises, the goods are delivered when they are loaded on the means of transport arranged by the buyer.

Second, when the named place is another place, the goods are delivered when, having been loaded on the seller’s means of transport, they reach the named other place and are ready for unloading from the seller’s means of transport and at the disposal of the carrier or of another person nominated by the buyer.

Question 2

For which modes of transport can FCA be used?

Answer 2

All means of transport.

Question 3

Who clears the goods for Export in FCA?

Answer 3

Seller

Question 4

Who clears the goods for export in FCA?

Answer 4

The seller

Question 5

Who clears the goods for transit in FCA?

Answer 5

Buyer

Question 6

Is the seller obligated to pay any import or transit related costs in FCA?

Answer 6

No

Question 7

When is FCA better than EXW?

Answer 7

FCA is considered a better option than EXW since it does not put the buyer in a difficult position of arranging local transport and dealing with customs at the seller’s location.

Question 8

When must the seller deliver the goods in FCA?

Answer 8

1. on the agreed date, or
2. at the time within the agreed period notified by the buyer, or;
3. if no such time is notified, then at the end of the agreed period.

Question 9

In FCA what happens if the point of delivery is unknown for the seller and there are several of them in the place of delivery?

Answer 9

The seller can choose the point that best suits its purpose

Question 10

When does the risk transfer happen in FCA?

Answer 10

When the goods have been delivered.

Question 11

Until when does the seller bear all risks of loss or or damage to the goods in FCA?

Answer 11

Until they have been delivered

Question 12

From when does the buyer bear all risk of loss of or damage to the goods in FCA?

Answer 12

From the time the goods have been delivered.
However, provided that the goods have been clearly identified as the contract goods, if the buyer fails to
1. nominate a carrier or another person obligated to take the delivery, or;
2. fails to give notice in accordance with B10, or;
3. the carrier or person nominated by the buyer fails to take the goods into its charge;

then, the buyer bears all risk of loss of or damage to the goods:
1. from the agreed date, or;
2. in the absence of an agreed date, from the time selected (by notifying the seller) by buyer in the agreed period for deliery, or;
3. if no such time has been notified, from the end of any agreed period for delivery

Question 13

Is seller obligated to contract a carriage in FCA?

Answer 13

No. However, the seller must provide the buyer, at the buyer’s request, risk and cost that the buyer needs for arranging carriage.

If parties agree, that the seller must arrange carriage, then, seller must contract for carriage on the usual terms at the buyer’s risk and cost.

The seller must comply with any transport-related security requirements up to delivery.

Question 14

What happens if parties agree that the seller is obligated to arrange carriage in FCA?

Answer 14

If parties agree, that the seller must arrange carriage, then, seller must contract for carriage on the usual terms at the buyer’s risk and cost.

Question 15

Is buyer obligated to arrange carriage in FCA?

Answer 15

Yes, he must contract or arrange at its own cost for the carriage of the goods from the named place of delivery, Except, when the contract of carriage is made by the seller.

Question 16

Who deals with insurance in FCA?

Answer 16

no one

Question 17

Is seller obligated to provide any information relating to insurance in FCA?

Answer 17

Yes. he must provide, at the buyer’s request, risk and cost that the buyer needs for obtaining insurance.

Question 18

What are the seller’s obligations in relation to delivery/transport documents in FCA?

Answer 18

He must provide the buyer at his cost with the usual proof that the goods have been delivered accordingly.

The seller must provide assistance to the buyer, at the buyer’s request, risk and cost, in obtaining a transport document.

Where the buyer has instructed the carrier to issue to the seller a transport document, the seller must provide any such document to the buyer.

Question 19

What kind of delivery/transport-related assistance must the seller provide to the buyer in FCA?

Answer 19

The seller must provide assistance to the buyer, at the buyer’s request, risk and cost, in obtaining a transport document

Question 20

What are the seller’s obligations when the buyer instructed the carrier to issue to the seller a transport document in FCA?

Answer 20

the seller must provide any such document to the buyer.

Question 21

What are the buyer’s delivery/transport document related obligations in FCA?

Answer 21

The buyer must accept the proof that the goods have been delivered accordingly.

If the parties have so agreed, the buyer must instruct the carrier to issue to the seller, at the buyer’s cost and risk, a transport document stating that the goods have been loaded (such as a bill of lading with an onboard notation).

Question 22

What are the seller’s obligations in regards to export/import in FCA?

Answer 22

He must clear the goods for the export (pay for all export clearance formalities required by the country of export).

He must assist the buyer, at the buyer’s request, risk and cost, in obtaining any documents or information related to all transit/import formalities.

Question 23

With what is seller obligated to assist the buyer in FCA?

Answer 23

at the buyer’s request and cost, with import/transit and insurance related information and in obtaining a transport document.

Question 24

What are the buyer’s obligations in regards to export/import in FCA?

Answer 24

The buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents or information related to all export clearance formalities

The buyer must carry out and pay for all import/transit formalities.

Question 25

With what is buyer obligated to assist the seller in FCA?

Answer 25

The buyer must assist the seller at the seller’s request, risk and cost in obtaining any documents or information related to all export clearance formalities

Question 26

what kind of obligations does the seller have with regards to checking/packaging/marking in FCA?

Answer 26

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighting, counting) that are necessary for the purpose of delivering goods accordingly.

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged.

the seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

Question 27

what kind of obligations does the seller have with regards to checking in FCA?

Answer 27

The seller must pay the costs of those checking operations (such as checking quality, measuring, weighting, counting) that are necessary for the purpose of delivering goods accordingly.

Question 28

what kind of obligations does the seller have with regards to packaging and marking in FCA?

Answer 28

The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged.

the seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.

Question 29

When is the seller not obligated to package the goods in FCA?

Answer 29

when it is usual for the particular trade to transport the type of goods sold unpackaged.

Question 30

Who pays for checking/packaging/marking in FCA?

Answer 30

Seller

Question 31

what kind of obligations does the buyer have with regards to checking/packaging/marking in FCA?

Answer 31

none

Question 32

How the costs are allocated for the seller in FCA?

Answer 32

He must pay:
1. all costs relating to the goods until they have been delivered accordingly
2. costs of providing the usual proof to the buyer that the goods have been delivered accordingly;
3. duties, taxes and other costs related to export clearance, where applicable
4. the buyer all costs and charges which the buyer spend for providing assistance to the seller.

Question 33

How the costs are allocated for the buyer in FCA?

Answer 33

the buyer must pay:
1. all costs related to the goods from the time they have been delivered accordingly;
2. the seller for all costs and charges which the seller spend for providing assistance to the buyer.
3. where applicable, duties, taxes and any other costs related to transit or import
4. any additional costs incurred, either because:
4.1. the buyer fails to nominate a carrier or other person;
4.2. the carrier or person nominated by the buyer fails to take the goods into its charge;
provided that the goods have been clearly identified as the contract goods.

Question 34

What kind of notice must seller give to the buyer in FCA?

Answer 34

The seller must give the buyer sufficient notice either that the goods have been delivered accordingly or that the carrier or another person nominated by the buyer has failed to take the goods within the time agreed.

Question 35

About what the buyer must notify the seller in FCA?

Answer 35

1. the name of the carrier or another person nominated within sufficient time as to enable the seller to deliver the goods accordingly;
2. the selected time, if any, within the period agreed for delivery when the carrier or person nominated will receive the goods;
3. the mode of transport to be used by the carrier or the person nominated.
4. the point where the goods will be received within the named place of delivery.