--- title: "What Is FCA (Free Carrier)?" url: https://www.uncap.com/glossary/fca author: "Denis Dyli" published: 2026-10-28 updated: 2026-10-28 summary: "FCA (Free Carrier) is the Incoterms rule under which the seller clears the goods for export and delivers them to the carrier or other person nominated by the buyer at an agreed place. Delivery, and the transfer of risk, happens either at the seller's premises once the goods are loaded, or at another named place, ready for unloading." --- # What Is FCA (Free Carrier)? > FCA (Free Carrier) is the Incoterms rule under which the seller clears the goods for export and delivers them to the carrier or other person nominated by the buyer at an agreed place. Delivery, and the transfer of risk, happens either at the seller's premises once the goods are loaded, or at another named place, ready for unloading. **FCA (Free Carrier)**: FCA (Free Carrier) is the Incoterms rule under which the seller clears the goods for export and delivers them to the carrier or other person nominated by the buyer at an agreed place. Delivery, and the transfer of risk, happens either at the seller's premises once the goods are loaded, or at another named place, ready for unloading. ## How it works FCA, short for Free Carrier, is one of the seven Incoterms 2020 rules from the International Chamber of Commerce (ICC) that work for any mode of transport, written as FCA followed by the named place of delivery. ICC Academy names two main obligations for the seller: deliver the goods to the carrier or person nominated by the buyer, and carry out export clearance. The parties pick one of two delivery points: - The seller's premises: the seller fulfils its delivery obligation by loading the goods onto the buyer's collecting vehicle. - Another named place, such as a warehouse or a terminal at the port of departure: the seller delivers the goods to the carrier or the buyer's designated person, ready to be unloaded from the seller's vehicle. The buyer unloads them and loads them onto the next mode of transport. In either case, risk of loss or damage passes to the buyer at that agreed place and point. ICC's guidance on tariffs lists export clearance as the seller's under FCA, and import clearance and tariffs as the buyer's. ICC Academy says FCA costs include the value of the goods, their packaging, the cost of loading onto the collecting vehicle if delivery is at the seller's premises, and the cost of export formalities. Transport beyond the FCA delivery point is the buyer's responsibility. For Incoterms 2020, the ICC revised FCA for goods sold FCA for carriage by sea where a bill of lading with an on-board notation is requested. The parties can now agree that the buyer will instruct its carrier to issue an on-board bill of lading to the seller once the goods are loaded, and the seller then tenders that document to the buyer, often through the banks. This is general information, not legal advice. ## FCA vs EXW and FOB - FCA vs EXW: under EXW the seller neither loads the goods nor clears them for export. ICC Academy encourages traders to consider FCA instead of EXW where the goods are crossing a border. - FCA vs FOB: FOB is one of the four rules for sea and inland waterway transport, with delivery on board the vessel at the named port of loading. ICC Academy says FCA is the appropriate rule for goods in containers or on pallets moving by more than one mode, and FOB for goods transported in bulk between ports. ## Example A manufacturer sells 10 pallets at $2,500 each, FCA its own dock: 10 x $2,500 = $25,000. - The buyer's carrier arrives, the manufacturer loads the pallets and has completed export clearance. Risk passes to the buyer once the pallets are loaded. - The $25,000 covers the goods, packaging, loading and export formalities. - The buyer pays the $3,000 main carriage, so its cost before import duties is $25,000 + $3,000 = $28,000. ## On Shopify The [FOB (free on board)](/glossary/fob) page covers the Shopify B2B tools for setting shipping on a draft order and keeping an agreed delivery term with a company account, and the same tools can record an FCA sale. If the buyer's carrier collects the order at one of your locations, Shopify says that to have a customer pick up an order from one of your locations, you must select an in-store pickup location when creating the draft order. ## How Uncap helps Under FCA at the seller's premises, the buyer's carrier collects the goods from your location. On Uncap's [electrical and electronics page](/industry/electrical-electronics), for a supply house, each branch can be set up as a pickup location, so will call is a choice made at checkout rather than a note in the order comments. ## Related terms - Incoterms - EXW (Ex Works) - Bill of lading - Letter of credit - DDP (Delivered Duty Paid) ## Sources - ICC Academy: FCA and EXW Incoterms 2020 explained - International Chamber of Commerce: Incoterms 2020 - ICC: Using the Incoterms 2020 Rules to Manage Tariff Risk (PDF) ## Frequently asked questions ### What is the meaning of FCA in shipping? FCA means Free Carrier, an Incoterms rule under which the seller clears the goods for export and delivers them to the carrier or person the buyer nominates, either loaded at the seller's premises or ready for unloading at another named place. ### Who pays freight with FCA terms? The buyer pays the main carriage. Under FCA, transport costs beyond the delivery point are the buyer's responsibility, while the seller pays for export formalities and, when delivery is at its premises, for loading. ### Is FCA the same as DDP? No. Under FCA the seller hands the goods to the buyer's carrier at the named place of delivery, and the buyer handles import clearance and pays tariffs. Under DDP the seller delivers at the destination and handles and pays for import clearance and tariffs. ### What is the difference between FCA and FOB? FCA works for any mode of transport and delivers at the seller's premises or another named place. FOB is only for sea and inland waterway transport and delivers on board the vessel at the named port of loading. ICC Academy suggests FCA for containers or pallets and FOB for bulk cargo between ports.