Legal Definitions - free carrier

Definition: Free Carrier (FCA) is a term used in business contracts to define the responsibilities of the buyer and seller regarding the delivery, payment, and risk of loss of goods. The seller must clear the goods for export and deliver them to the buyer's chosen carrier at a named place. The seller's delivery is complete when the goods are loaded on the collecting vehicle or otherwise placed at the carrier's disposal. The buyer is responsible for all costs of carriage, and there are no restrictions on the buyer's choice of carrier.

Suppose a company in the United States wants to buy goods from a company in China. They agree to use the Free Carrier (FCA) term in their contract. The Chinese company is responsible for clearing the goods for export and delivering them to the buyer's chosen carrier at a named place, such as a port. Once the goods are loaded onto the carrier, the risk of loss passes to the buyer, who is responsible for all costs of carriage from that point forward. The buyer can choose any carrier they want to transport the goods to the United States.

Another example could be a company in Germany selling goods to a company in France. They agree to use the FCA term in their contract. The German company is responsible for clearing the goods for export and delivering them to the buyer's chosen carrier at a named place, such as a warehouse. Once the goods are loaded onto the carrier, the risk of loss passes to the buyer, who is responsible for all costs of carriage from that point forward. The buyer can choose any carrier they want to transport the goods to France.

These examples illustrate how the Free Carrier (FCA) term works in business contracts. The seller is responsible for delivering the goods to the buyer's chosen carrier at a named place, and the buyer is responsible for all costs of carriage from that point forward. The buyer has the freedom to choose any carrier they want to transport the goods, which gives them more control over the shipping process.