Incoterms

This page is designed to provide a basic level of understanding of Incoterms ® 2020 Rules published by the International Chamber of Commerce (ICC)

FCA - Free Carrier (named place of origin)

The most common term (almost 40% of international treaties are drawn up with this rule), because it is universal and easy to use. The best benefits are the use of any type of transport and any place of delivery of goods that is located in the seller’s country. There are 2 points of dispatch:

1. A point of dispatch of goods that belongs to the seller - this can be his warehouse, store, etc. Delivery is considered completed if the goods are loaded on the buyer's vehicle or transferred to the courier specified by the buyer.

2. A point that does not belong to the seller - it can be a seaport, airport, etc. Delivery is considered completed when the goods have been transferred to the carrier from the seller’s vehicle. Unloading goods from the seller’s vehicle is not the responsibility of the carrier.

If the buyer instructed to give the seller a package of documents (for example, a bill of lading marked “on board” or an air waybill) then the carrier must provide all original consignment notes to the seller.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.

Incoterm/Cost
Packaging
Loading from warehouse
Export customs clearance
Pre-carriage
Origin port fees
Handling at departure (OTHC)
Main transportation
Transportation insurance
Handling arrival (DTHC)
Destination port fees
Post carriage
Import customs clearance
Unloading into warehouse
EXW
S
S
B
B
B
B
B
B
B
B
B
B
B
FCA
S
S
S
B
B
B
B
B
B
B
B
B
B
CPT
S
S
S
S
B
B
B
B
B
B
B
B
B
CIP
S
S
S
S
B
B
B
S
B
B
B
B
B
FAS
S
S
S
S
S
B
B
B
B
B
B
B
B
FOB
S
S
S
S
S
S
B
B
B
B
B
B
B
CFR
S
S
S
S
S
S
S
B
B
B
B
B
B
CIF
S
S
S
S
S
S
S
S
B
B
B
B
B
DPU
S
S
S
S
S
S
S
B
S
B
B
B
B
DAP
S
S
S
S
S
S
S
B
S
S
S
B
B
DDP
S
S
S
S
S
S
S
B
S
S
S
S
B