Question

what is responsible for cost and risk in FCA incoterm until which point of delivery ?

Answer 1

Abstract

Free Carrier" means that the seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point.

If no precise point is indicated by the buyer, the seller may choose within the place or range stipulated where the carrier shall take the goods into his charge.

When, according to commercial practice, the seller's assistance is required in making the contract with the carrier (such as in rail or air transport) the seller may act at the buyer's risk and expense.

Responsibility of Cost & Risk

The free carrier is a trade term dictating that a seller of goods is responsible for the delivery of those goods to a destination specified by the buyer.

When used in trade, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier and seller is responsible to incur all the cost till this point of delivery.

The destination is typically an airport, shipping terminal, warehouse, or other location where the carrier operates. It might even be the seller's business location.

The seller includes transportation costs in its price and assumes the risk of loss until the carrier receives the goods. At this point, the buyer assumes all responsibility and risk is transferred to Buyer

Point of Delivery

The seller is only responsible for delivery to the specified destination as part of the liability transfer. It isn't obligated to unload the goods, but the seller might be responsible for ensuring that the goods have been cleared for export out of the United States if the destination is the seller's premises.

Buyers and sellers engaged in economic trade requiring the shipment of goods can use a free carrier agreement (FCA) to describe any transportation point, regardless of the number of transportation modes involved in the shipping process.

The point must be a location within the seller’s home country, however. It's the seller's duty to safely transport the goods to that facility. The carrier can be any kind of transportation service, such as a truck, train, boat, or airplane.

Main Key point of FCA Inco-terms

• Free carrier is a trade term requiring the seller of goods to deliver those goods to a named airport, shipping terminal, warehouse, or other carrier location specified by the buyer.
• The seller includes transportation costs in its price and assumes the risk of loss until the carrier receives the goods.
• Once the seller delivers the goods to the carrier, the buyer assumes all responsibility for the goods.
• The International Chamber of Commerce updated Incoterms in 2010 to include the free carrier provision.
• As part of the liability transfer, the seller is only responsible for delivery to the specified destination but isn't obligated to unload the goods.