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What is free carrier in incoterm?

FCA (Free Carrier) is an international trade term that defines the specific point at which the seller's responsibility for the goods ends and the buyer's responsibility begins. Under FCA terms, the seller is obligated to deliver the goods to a specified carrier or place designated by the buyer, but is not responsible for loading the goods onto the buyer's transport or for any subsequent steps in the delivery process.

Key points about FCA (Free Carrier):

1. Delivery Point: The seller's responsibility is to deliver the goods to a nominated carrier or a specified place named by the buyer. The buyer is responsible for all arrangements and costs beyond this point.

2. Loading: The buyer is responsible for loading the goods onto the buyer's transport or arranging for a third party to do so.

3. Customs Clearance: The seller is responsible for clearing the goods for export from their country, while the buyer is responsible for importing the goods into their country of destination.

4. Insurance: It's the buyer's responsibility to arrange insurance for the goods if deemed necessary.

5. Risk Transfer: The risk of loss or damage to the goods passes from the seller to the buyer upon delivery to the specified carrier or at the designated place.

FCA is often used in scenarios where the buyer has control over the transport arrangements and wants to be in charge of the logistics process from the point of origin. However, it's important to note that the specific obligations of the buyer and seller may vary based on the agreed-upon terms and the laws and regulations of the countries involved.