FCA – Free Carrier Mini Guide - Trade Finance Global

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        Soft Commodities Trader

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        Purchasing commodities from Africa, the US, and Europe and selling to Europe, a metals trader required a receivables finance facility for a book of their receivables/customers.

        Energy Trading Group

        An energy group, selling mainly into Europe, desired a receivables purchase facility to discount names, where they had increased sales and concentration.

        Clothing company

        Rather than waiting 90 days until payment was made, the company wanted to pay suppliers on the day that the title to goods transferred to them, meaning it could expand its range of suppliers and receive supplier discounts.

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Free Carrier FCA

FCA – Free Carrier Mini Guide

Issue 01 . Jan 2019
The Free Carrier (FCA) rule requires the seller to deliver the goods to the buyer or its carrier either 1) at the seller’s premises, loaded onto the collecting vehicle, or 2) delivered to another location (typically a forwarder’s warehouse, airport, or container terminal) not unloaded from the seller’s vehicle. The seller must carry out any export formalities, and the buyer must carry out any import formalities. FCA can be considered a step up from the largely unworkable EXW in that the seller is now responsible for physically handing the goods over, with the risk only being transferred to the buyer when delivery is made. This rule works well for land transport within the European and Central Asian landmass because the truck collecting the goods will often be the same one transporting them to the final destination.
01 Jan 2019 Published by
Bob Ronai
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