How does the FCA work in maritime transport?

First, both buyers and sellers are free to decide the shipping method. Therefore, under Incoterms FCA, if the importer wishes to have the goods shipped by air, they may contract this type of carrier if they can afford the transportation costs.

While insurance is not mandatory for both buyers and sellers using FCA shipping, they are free to decide whether or not to obtain an insurance policy.

So, assuming both parties complete all export and import procedures, and ocean freight is chosen as the primary mode of transport, this is how the goods are shipped from the seller's country to the buyer's country under FCA shipping terms:

Measures to be taken by sellers according to the FCA
Step 1
Goods loaded by the seller onto local transport (truck, van, etc.)
Step 2
The seller takes the transport to the port of export.
Step 3
The exporter/seller keeps the items at the port of export

Measures to be taken by the buyer according to the FCA
Step 1
The person appointed by the importer or the transport company comes to unload the goods from the truck (the same transport arranged by the seller)
Step 2
After unloading, the goods are loaded onto the cargo vessel at the port of origin under the buyer's supervision, and the shipping process begins.
Step 3
Once the goods arrive at the port of destination (port of import), the buyer transfers all the goods from the vessel to the local transport.
Step 4
Local transport (truck in most cases) travels to the buyer's premises (warehouse, factory or any other location)
Step 5
Once the goods arrive, the buyer unloads them from the truck and stores them at their facilities. As you can see, sellers are responsible for the minimum steps, while buyers have more obligations to fulfill under FCA Incoterms.

Example of FCA Incoterms
Let's learn about FCA Incoterms with an example.

“Ali the seller” from China had a business contract with “John the buyer” in Canada to ship 10,000 denim shirts.

Both parties agreed to the FCA Incoterms. Therefore, once Ali, the seller, completes all the export documentation and receives authorization from the authorities, he will deliver the goods to a port in China (port of origin).

“Ali the Seller” will be responsible for the security and delivery of the entire shipment until it is delivered to the agent or carrier through John the Buyer (who will be there at the port of origin).

Now, the carrier or agent will be responsible for delivering the goods from the port of origin to the port of destination so that Juan can receive the shipment.

As can be seen in the previous example, the seller's obligation remains in effect until the goods are delivered at the port of origin. After that, the buyer will assume responsibility for transporting the goods from the port of origin to the port of destination.

While the seller is not obligated to arrange primary transportation or pay its costs from the port of origin to the port of destination, they may do so if the buyer requests. However, even in this case, the buyer will bear all primary freight costs.

Responsibilities of the buyer or importer under the FCA
1. Origin charges at the terminal
The buyer will pay the cost of the shipping terminal. This is the point where the cargo is loaded onto a designated vessel or boat for onward transportation to the destination.

2. Loading charges
Shipping service includes freight charges and the buyer must pay the price.

3. Transportation costs
The importer pays the freight costs for transporting the goods from the port of origin (seaport or airport) to the mentioned location.

4. Destination charges at the terminal
The buyer also pays terminal fees when the shipment arrives at the port of destination. These fees include unloading, holding, and transfer of the cargo until all import formalities are completed.

5. Delivery of goods to the destination
All buyers are responsible for transporting imported goods from the port of destination to other locations of their choice, such as a warehouse.

6. Unloading of goods at destination
When the goods are delivered, the buyer must assume any unloading costs.

7. Import duties and customs clearance
All duties and taxes related to import and customs clearance are the buyer's responsibility. In the event of an inspection by the authorities, the buyer must comply with the orders.

Responsibilities of sellers or exporters under the FCA
1. Standard export packing
Some countries require specific packaging for export goods. For a successful export, the seller must package the goods in a manner that meets the importing country's packaging criteria.

2. Export duties and customs clearance
The seller is responsible for any costs associated with export taxes and duties imposed in their country. They must also ensure customs clearance and prepare to handle any special clearance or inspection of the shipment if required by the authorities.

3. Organization of prior transportation
As the seller, you are responsible for arranging pre-transportation to transport the goods from your warehouse to the agreed-upon location (port of origin). During this process, you will be responsible for the costs of loading the goods from your warehouse or onto pre-transportation, such as a truck. You will also be responsible for paying the pre-transportation costs from your warehouse to the port of origin.

What sellers must do under the FCA

Sellers or exporters are subject to several FCA obligations, such as:

• Upon delivery of the goods, the seller must also provide proof of conformity and the commercial invoice.
• You must deliver all merchandise to the agreed-upon location (in most cases, the port of origin) within the specified date or timeframe. If no date is specified, all merchandise will be handed over to the carrier.
• Until delivery at the port of origin, the seller is responsible for any damage or loss of the goods.
• You must submit the proof of delivery along with any other transport documents if the buyer requires them.
• Cover all clearance costs (inspection, security, licensing, etc.) required for the export process, as well as provide assistance with import clearance.
• Obliged to check, weigh, mark, count and pack goods.
• Notify the buyer about the delivery of the goods or if the carrier does not receive the goods