FCA shipping stands for Free Carrier. With FCA (free carrier) shipping methods, the sellers deliver the products to the location determined by the buyers. This location can be the seller's warehouse or a location determined by the carrier.
FCA shipping has three letters and is used with the place name, just like other delivery methods. For example, if the loading will be done in Ankara, the expression FCA Ankara is used. By the way, FCA delivery method can be used in rail, sea and land transportation. In the FCA method, the freight belongs to the buyer until it arrives at the destination. The carrier is determined by the buyer. In addition, the risk is among the responsibilities of the buyer from the point where the products are delivered to the destination.
When quoting a price in FCA, the cost of documents required for export, the cost of permits, costs for customs clearance are included in the price and customs clearance is paid by the seller.
There are 11 delivery methods in international trade. Delivery types are divided into two groups as the rules covering sea and in-water transportation and the rules covering all transportation types.
The rules covering all types of transport are as follows:
FCA- Free Carrier
CIP- Carriage and Insurance Paid To
DAT- Delivered at Terminal
DAP- Delivered at Place
DDP- Delivered Duty Paid
CPT- Carriage Paid To
EYW- Ex Works
The rules used on the waterway and sea route are as follows:
FAS- Free Alongside Ship
FOB- Free on Board
CIF- Cos, Insurance, Freight
FCA Delivery Method in Transport
In the FCA delivery, the seller packs the goods in accordance with international transport rules. Then it is delivered to the shipping company. The buyer determines the shipping company. It is the seller's responsibility to deliver the goods as requested to the transport company chosen by the buyer. Afterwards, necessary legal regulations are fulfilled. After customs clearance, the goods are delivered by the seller. After the products are delivered, the responsibility passes from the seller to the buyer. Therefore, the buyer must insure both the goods and the transport, taking into account any damage that may occur to the goods. We can say that the buyer is responsible for the risks in FCA delivery.
In FCA shipping, the seller must first prepare the goods as specified and requested. The preparation phase may vary depending on the product. Because some products may not need extra packaging, some goods may require different types of packaging. For example, dangerous and flammable products should be quality controlled according to international standards and then packaged appropriately.
In the FCA delivery method, the seller must comply with the buyer's demands before shipping. After the sellers prepare the product, they also get the necessary permits for export. For this, they need to prepare some paperwork. These documents are ATR, invoice, FCR, bill of lading. After the necessary customs procedures are completed and the documents are approved, the responsibility of the seller ends. The products are delivered to the destination on the delivery date. If no place is specified, the seller can deliver where he sees fit. The seller pays the costs of loading or shipping until the goods are delivered. After the bill of lading and customs declaration is issued, the responsibility of the goods passes to the buyer.
In FCA delivery, the most important obligation of the buyer is to pay the price of the goods as specified in the contract. After the delivery of the goods, the risks pass to the buyer. The seller proves that he has delivered the goods to the buyer with all documents, invoices and declarations.
The buyer is responsible for any damage that may occur on the way during the delivery of the goods. The buyer must insure the transport to avoid risks. When the goods arrive at his customs, the buyer performs the customs procedures and gets import permits. Tax exemptions and customs duties may vary depending on the seller's country. So the details are handled by the seller. The buyer is responsible for paying the freight cost, customs duty and customs fee at the destination port.
FCA shipping method is very advantageous for sellers. Some companies prefer the FCA delivery method, because all controls during the shipping process are the responsibility of the buyer. Because the buyer can make a freight agreement in a more economical way. Of course, the FCA delivery method has some advantages and disadvantages for both the buyer and the seller.
There may be some risks when transporting products in multi-vehicle transportation. These risks are the responsibility of the buyer. In addition, some expenses such as freight and insurance are also the responsibility of the buyer. Taxes, duties or other legal regulations of the buyer's country are also the responsibility of the buyer.
One of the most curious details about the Fca delivery method is “How is the Fca delivery method priced?” The exporting company first determines the cost of the product. Then, the profit share and the shipping cost required for the address where the buyer will deliver the goods are added to this cost. Thus, the price for the FCA delivery method can be determined.
In order to detail the pricing on FCA delivery, we can specify the costs that the seller must pay as follows.
The buyer pays the packaging, pre-transport and export customs costs. The seller pays the expenses such as transportation, transportation insurance, final transportation, import customs, unloading from the transportation vehicle, loading to the transportation vehicle. In addition, all risks other than packaging, pre-transportation and export customs are the responsibility of the buyer.
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