This term may be used irrespective of the chosen mode of transport and by using more than one mode of transport.
"Free Carrier "(" Free carrier ") means that the seller carries out the transfer of goods to the carrier or other person nominated by the buyer, in their premises or in another conditional clause. Parties are encouraged to most accurately determine the point at the named place of delivery, as the risk passes to the buyer at this point.
If the parties intend to transfer the goods at the seller’s premises, they must indicate the address of the premises at the agreed place of delivery. If the parties believe that product must be transmitted elsewhere, they must determine this place of transmission.
According to FCA the seller is required to comply with customs formalities for export, if any.
FCA, delivery condition when the bulk of the freight is provided by the buyer. In this case, the buyer chooses the type of transport himself, organizes the entire delivery chain himself, concludes transportation contracts.
The seller's delivery obligation is deemed to have been fulfilled when he delivers the goods after customs clearance under export regime:
loaded into the transport company carrier in the premises owned by the seller.
in the vehicle of the seller is ready for shipment to the carrier’s transport if the free place is not located on the seller’s territory:
in the indicated place.
Said the place of delivery influences the obligations of loading and unloading the goods at that place. If delivery takes place at the seller’s premises, the seller is responsible for loading. If the delivery occurs in any other place, the seller is not responsible for loading, unless otherwise specified in the contract.
In practice, this condition is usually specified by using other terms, such as, for example, in the case of carriage of cargo, which is a multiple of one or more transport units (wagons, cars, barges, etc.):
FOT (free on truck);
FIW (free in wagon);
FIB (free into barge);
If the goods are not enough to fully load a particular vehicle and, for example, to transport to the final destination, the buyer will need to organize the consolidation of the goods, then you can arrange delivery with the seller of the goods to any terminal, warehouse, port, indicated by the buyer:
FT (free terminal);
FOR (free on rail);
FFB (free ferry berth);
The buyer may designate any person to receive the goods. As a “carrier”, both the carrier itself and the forwarding company, the station’s cargo yard, berth, terminal, port, etc. can act. In this case, the seller is considered to have fulfilled his obligation to deliver when the goods are delivered to such a person.
For deliveries subject to FCA the seller has a better position - it has minimal risks and obligations.
Learn what you need to do when choosing FCAClose the list of actions for FCA
to clarify in detail the parameters and characteristics of the packages (including labeling), this is necessary for the subsequent customs clearance of goods;
find out the seller’s shipping options;
agree with the seller on the type of vehicle, the amount of goods ready for loading (especially if contract long-term supply, and deliveries are made in batches under one contract)
take into account the peculiarities of cargo transportation (in the case of dangerous goods);
clearly agree with the seller the place of transfer of goods;
notify the seller where and when to deliver cargo;
agree with the insurance company the conditions of insurance, if necessary;
provide the Seller with full information in advance about the specific carrier, vehicle (for processing customs and transport documents)
clarify how the seller must fulfill its obligations for the shipment of goods to the carrier;
clarify the scope of responsibility and the carrier’s obligations for the transportation of the goods prior to transferring it to the buyer;
Of course, this list is not complete and depends on the specific case, but, under these delivery conditions, the buyer's logisticians can prove themselves most influential and bring additional profit using intermodal transportation.
1. General obligations of the seller and the buyer under the conditions FCA
A.1.The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, the commercial invoiceinvoice, as well as any other proof of compliance of the goods with the terms of the contract of sale, which may be required under the terms of the contract. Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure if agreed by the parties or is common.
V.1. The buyer must pay the price of the goods, as provided for in the contract of sale. Any document referred to in paragraphs B1-B10 may be an equivalent electronic record or other procedure, if agreed by the parties or is common.
2.Licenses, permits, security controls and other formalities under the conditions FCA
A.2.If required, the seller must, at his own expense and risk, an export license or other official authorization and carry out all customs formalities necessary for the export of goods.
V.2.If required, the buyer must obtain at his own expense and risk import license or other official authorization and carry out all customs formalities for the import of goods and its transportation through any country.
3. Contracts of carriage and insurance under conditions FCA
A.3.a) Contract of carriage The seller no duty to the buyer under the contract of carriage. However, at the request of the buyer or if it is commercial practice and the buyer does not give timely instructions to the contrary, the seller may be at the expense and risk of the customer contract for carriage on usual terms. In any case, the seller may refuse to conclude a contract of carriage, without delay, by notifying the buyer. b) Contract of insurance The seller no duty to the buyer under a contract of insurance. However, the seller must provide the buyer, at his request, at his risk and expense (if any costs), the information necessary for the buyer of insurance.
V.3.a) Contract of carriage The buyer shall at his own expense for the carriage of the goods from the named port of shipment, except in cases where the contract of carriage is the seller, as described in paragraph A3 a); b) Contract of insurance The buyer has no obligation to the seller to conclude a contract of insurance.
4. Delivery and acceptance of goods under conditions FCA
A.4.The seller is obliged to transfer to the carrier or another person nominated by the buyer at the agreed point (if any) at the named place of delivery on the date or within the agreed period. Delivery is completed: a) If the named place is the seller's premises, - when the goods are loaded into a vehicle provided by the buyer; b) in any other case - when the goods are placed at the disposal of the carrier or another person nominated by the buyer at the seller and the vehicle ready for unloading. If a particular item is not specified by the buyer, as provided for in paragraph B7 d), - at the named place of delivery, if there are multiple matching items the seller has the right to choose the item that best suits his purpose. Unless the buyer notifies Seller to the contrary, the seller may deliver the goods for carriage in such a manner as may be required in terms of the number and / or nature of the goods.
V.4.The buyer must take delivery of the goods as soon as they have been delivered in accordance with paragraph A4.
5. Transfer of risks under conditions FCA
A.5.Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5.
V.5.The buyer bears all risks of loss or damage to the goods from the moment of delivery in accordance with paragraph A4. If: a) the buyer does not report, as provided for in paragraph B7 about nominate the carrier or another person, as provided for in paragraph A4 or dispatches such notification; or b) the carrier or the person nominated by the buyer, as provided for in paragraph A4, will not accept the goods on their own responsibility, then the buyer bears all risks of loss or damage to the goods: i) from the agreed date or in the absence of such an agreed date, ii) the date within the agreed period, the message the seller, as stipulated in paragraph B7, or if such date is not communicated, iii) the expiry date within the agreed delivery period, provided that the goods were explicitly individualized as a commodity, which is the subject of the contract.
6 Allocation of costs under conditions FCA
A.6.The seller must pay:
all expenses related to the goods until the time of delivery in accordance with paragraph А4, except for expenses paid by the buyer, as provided for in paragraph Б6;
if necessary, the cost of the customs formalities to be paid for the export of goods, as well as any duties, taxes and other expenses paid upon export.
V.6.The buyer must pay:
all expenses related to the goods from the moment they are delivered, as provided for under A4, except, if necessary, the costs of completing customs formalities for exporting the goods, as well as all taxes, duties and fees payable upon exporting the goods as provided for A6 b);
any additional costs incurred as a result of the buyer’s non-nomination by the carrier or another person, as provided for in paragraph А4, the non-acceptance of the goods by the carrier or a person nominated by the buyer, as provided for in paragraph А4, or non-direction by the buyer of the relevant notice, as provided for in paragraph B7, provided that the product has been explicitly individualized as a product that is the subject of the contract.
if necessary, the cost of paying taxes, duties and other official charges, as well as the implementation of customs formalities payable when importing goods, and the cost of transporting it through any country.
7.Notification to buyer and seller under conditions FCA
A.7.Seller shall, at the expense and risk of the buyer, or to give him sufficient notice that the goods have been delivered in accordance with paragraph A4 or that the carrier or another person nominated by the buyer, did not accept the goods within the agreed time.
V.7.The buyer must inform the seller: a) name of the carrier or any other person nominated, as provided for in paragraph A4, for a sufficient period in order to enable the seller to deliver the goods in accordance with this paragraph; b) if necessary, the date within the agreed delivery period for which the carrier or a nominated person can pick up the goods; c) the mode of transportation to be used by the nominated person; and d) the point of taking delivery at the named place.
8.Documentary proof of delivery under conditions FCA
A.8.Seller shall at its own expense provide the buyer with the usual proof that the goods have been delivered in accordance with paragraph A4. The seller must provide the buyer's request, the purchaser, at his expense and risk, assistance in obtaining a transport document.
V.8.The buyer must accept the proof of delivery in accordance with paragraph A8.
9.Checking, packaging, labeling and inspection of goods under conditions FCA
A.9.The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4, as well as the costs of goods before shipment inspection, including inspection, which is prescribed by the authorities of the exporting country. The seller must, at his own expense, ensure the packing of the goods, unless it is customary in the industry to ship the goods specified in the contract in unpacked packaging. The seller may pack the goods in such a way as is necessary for his transportation, unless the buyer informs the seller about the specific packaging requirements before entering into the contract. Marking packaged goods must be properly implemented.
V.9.The buyer must pay the costs for the mandatory inspection of goods prior to shipment, except when such inspection is carried out by order of the authorities of the exporting country.
10. Assistance in obtaining information and related costs under the conditions FCA
A.10.If need be, the seller is obliged to provide the purchaser or to assist him in obtaining, at the request of the buyer, at his risk and expense, documents and information, including safety information, which may require the purchaser to import goods and / or transportation to the final destination. The seller is obliged to compensate the buyer for all costs and charges incurred by the buyer in obtaining or providing assistance in obtaining documents and information as provided for in paragraph B10.
V.10.The buyer must notify the seller in a timely manner the requirements with regard to safety information, so that the seller could act in accordance with paragraph A10. The buyer must reimburse the seller incurred by him costs and charges for providing or rendering assistance in obtaining documents and information as provided for in paragraph A10. If required, the buyer is obliged to provide the seller or facilitate in the seller receiving, at the request of the seller, at his risk and expense, documents and information, including important safety information, which may require the seller to transport, export of goods and for their transport through any country.
The Minister of Labor and Social Protection of the Russian Federation, Anton Kotyakov, said that for many workers the remote employment format will remain after the lifting of restrictions on coronavirus.
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