FCA Incoterms 2020: delivery terms and meaning · Контракт.Онлайн
Incoterms 2020 · group F — main carriage unpaid

FCA — Free Carrier: delivery terms under Incoterms 2020

The seller clears export customs and hands the goods over to the buyer's carrier. From there carriage, insurance and risk are the buyer's. The FCA term is already selected in the generator

What you are drafting
Import of goods on FCA termsExport of goods on FCA terms DOCX
КОНТРАКТCONTRACTMoscow
1. Предмет Контракта 2. Стоимость Контракта 3. Условия поставки 4. Условия оплаты 5. Гарантии и качество 6. Ответственность сторон 7. Арбитраж
1. Subject of the Contract 2. Cost of Contract 3. Terms of the Delivery 4. Terms of the Payment 5. Guarantee and Quality 6. Liability of the Parties 7. Arbitration
ПРОДАВЕЦ / THE SELLERПОКУПАТЕЛЬ / THE BUYER
ПРИЛОЖЕНИЕ № 1 к КОНТРАКТУANNEX No. 1 to CONTRACTСПЕЦИФИКАЦИЯ · SPECIFICATION
На поставку Товаров, на общую сумму
# Описание / Description ТН ВЭД / HS CODE Ед. изм. / Unit of meas. Кол-во / Q-ty Цена / Price Сумма / Total 1 2
Прочие условия / Other terms Гарантия / Warranty Документация / Documentation Условия поставки / Delivery terms Порядок оплаты / Terms of payment Период оказания услуг / Period of provision of services Срок возврата оплаты / Period of refund of payment
ПРОДАВЕЦ / THE SELLERПОКУПАТЕЛЬ / THE BUYER
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Fill in: Import of goods Fill in: Export of goods
F
group of terms
Any
mode of transport
Seller
export clearance
Buyer
pays for carriage
Buyer
import duties

What the draft already fills

Parties, documents and specifics for every deal scheme

Import of goods on FCA terms

PartiesBuyer — Russia, seller — foreign company
Delivery termFCA + place of shipment
DocumentsInvoice, packing list, declaration, waybill
SpecificsHS code · Supplier's SWIFT details

Export of goods on FCA terms

PartiesSeller — Russia, buyer — foreign company
Delivery termFCA + place of shipment
DocumentsInvoice, packing list, declaration, waybill
SpecificsAdvance refund on cancellation · HS code in the specification

How to write FCA into the contract

The FCA term is passed into the form from this page

1
1. Deal type

Import or export of goods. The parties, the goods with HS codes and the prices go into the same form; the Russian party's details are filled in from its INN (tax ID).

2
2. FCA and place

The FCA term is already selected. Enter the place of shipment: the seller's warehouse or the carrier's terminal with its address. The delivery term text in the specification will be assembled for FCA.

3
3. Preview and DOCX

The whole document is visible before payment: the English and Russian columns, the specification, the delivery term. After payment you get the DOCX.

A contract on FCA terms

An Incoterms rule applies to the supply of goods — import or export

Who does what under FCA

Risk passes when the goods are handed over to the buyer's carrier at the named place

Obligation
Seller
Buyer
Loading at the place of dispatch
At its own premises
In other cases
Export customs clearance
Yes
—
Main carriage
—
Yes
Cargo insurance
—
Optional: the risk in transit is the buyer's
Unloading at the destination
—
Yes
Import clearance, duties and taxes
—
Yes

FCA in the contract: what to specify

A delivery term without an exact place and without the conditions around it does not work well

✓Code and edition: “FCA [place], Incoterms® 2020” — without the year it is unclear which rules apply
✓Exact place of shipment: the seller's warehouse or the carrier's terminal with its address
✓Mode of transport: any
✓Deadline for notifying that the goods are ready for shipment
✓Transfer of title — Incoterms does not govern it; in the contract it is tied to the moment of delivery
✓Insurance: Incoterms imposes no obligation; decide for yourselves who insures
✓Payment procedure and the deadline for refunding the advance if there is no delivery
✓Documents the seller hands over: invoice, packing list, transport document

Questions about the FCA term

Meaning, risk, costs, title

FCA stands for Free Carrier. The goods are deemed delivered when the seller, having cleared export customs, hands them over to the buyer's carrier; from there carriage, insurance and risk are borne by the buyer.
FOB is for sea and river transport only: the goods are delivered when they are on board the vessel at the port of shipment. FCA suits any mode of transport, including containers handed over at a terminal before loading on the vessel. For such containers the Incoterms 2020 rules advise FCA instead of FOB: otherwise the risk stays with the seller while the cargo sits at the terminal outside its control.
The parties can now agree that the buyer will instruct its carrier to issue the seller a bill of lading with an on-board notation — the seller needs such a document, for example, for a letter of credit. It is also expressly allowed for the parties to carry the goods with their own means of transport without hiring a third-party carrier.
Incoterms does not govern the transfer of title — the rules deal only with delivery, risk and costs. The moment title passes is set by the contract or the applicable law; under Russian law (Article 223 of the Russian Civil Code) title arises from the moment the thing is handed over, unless the contract provides otherwise. In our contract title passes together with risk — at the moment of delivery under FCA.
The term code, the exact place of shipment and the edition of the rules, for example: FCA Shanghai, Seller's warehouse, 88 Pudong Avenue, Incoterms® 2020. Under Article 1211(6) of the Russian Civil Code, if the contract uses a trade term accepted in international commerce, the parties are deemed to have agreed on the customs that the term denotes — so it is better to name the edition explicitly.

A contract on FCA terms — 2 990 ₽

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✓ DOCX · Word / LibreOffice
✓ Bilingual EN/RU
✓ 173-FZ · CISG · Incoterms 2020
2 990 ₽
per document
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FCA Incoterms 2020 — delivery terms

FCA in simple terms

FCA is a term with a clear division: the seller clears export customs in its own country, and everything after the goods are handed over to the carrier is the buyer's. It suits any mode of transport, and it is the term Incoterms 2020 proposes instead of EXW, and for containers instead of FOB.

How FCA is written in our contract

The delivery term is set out in Annex No. 1 (Specification) in English and Russian. The English column for this term:
FCA [place]
Delivery and transfer of risk: The Seller has fulfilled its delivery obligation when it hands the Goods over to the carrier engaged by the Buyer at the named place ([place]): where that place is the Seller's premises — when the Goods are loaded onto the Buyer's means of transport; in any other case — when the Goods are placed at the carrier's disposal on the Seller's arriving means of transport, ready for unloading. The risk of loss of or damage to the Goods and the title to the Goods pass from the Seller to the Buyer at that moment.
Costs: The Seller bears the costs until delivery, including export formalities. The Buyer bears the costs of main carriage, insurance and all subsequent costs.
Customs clearance: export clearance is the Seller's obligation; import clearance, duties and taxes are the Buyer's.

FCA and customs value on import

When goods are imported into Russia under FCA, the carriage to the border is paid by the buyer, and these costs are not included in the price of the goods. Under Article 40 of the EAEU Customs Code, the costs of carriage to the place of arrival in the customs territory of the EAEU, as well as loading, unloading, transshipment and insurance in connection with that carriage, are added to the price when the customs value is calculated. So the carrier's and insurer's invoices up to the border will be needed for the declaration.

All terms: Incoterms 2020 · EXW · FAS · FOB · CPT · CIP · CFR · CIF · DAP · DPU · DDP. See also: import contract, export contract.