Meaning
Standardized international commercial terms define the precise point where seller obligations end and buyer responsibilities begin during freight transfer. Under incoterms fca, the seller completes delivery by releasing export-cleared cargo to a named carrier designated by the buyer at a specified location. Responsibility for loss or transit damage shifts completely to the buyer upon handover to the carrier.
The obligation terminates if the seller fails to obtain mandatory export clearances prior to physical handover.
Risk Transfer
Liability shifts instantly from seller to buyer at the precise moment cargo reaches the named transport terminal or carrier vehicle. Buyers assume all subsequent transport costs, including ocean freight and import taxes. Insurance policies align their coverage boundaries with this exact physical transfer point.
Terminal Handling
Sellers load cargo onto transport vehicles when delivery takes place on seller premises. Conversely, when delivery occurs at a designated carrier terminal, sellers are not responsible for unloading goods from their delivery vehicle. Logistics documentation records the precise timestamp of cargo release.
Export Clearance
Sellers bear full financial and administrative responsibility for obtaining export licenses and completing customs formalities before handover. Export declarations, hazardous material certificates, and commercial invoices must be cleared by customs authorities prior to carrier acceptance. Failure to secure clearance delays shipment transfer and imposes storage costs on the seller.
