Learn the critical distinction between delivery and shipment dates under FCA Incoterms, and the importance of proper documentation like Forwarder's Cargo Receipt.

FCA: clarifiying delivery

Incoterms FCA - International Commercial Terms

EXW is not recommended for buyers, as detailed in a separate article. Similarly, FOB is unsuitable for Full Container Loads (FCL), Less than Container Loads (LCL), airfreight, or road transportation of non-containerized goods. Instead, FOB is specifically recommended for bulk cargo, such as liquid bulk, dry bulk, or breakbulk.

Under FCA, the seller has two alternatives to deliver the goods:

The sellers’s facility

A place where sellers can easily control the production of goods, packaging and delivery. This place represents less risk for the seller as transportation is minimized.

The carrier’s facility

This requires local transportation to a designated cargo freight station (CFS), usually a receiving facility (warehouse), where the carrier receives the goods and arranges for international shipment. This point of delivery requires local freight, which is a risk that the seller can easily control.

What does “Delivery” mean

Delivery means that the goods have been placed where the carrier’s buyer can take control. It does not mean that the goods have started their international transportation to the final destination. A bill of lading must be issued upon receipt of the cargo; the bill of lading is also proof of delivery by the carrier. Therefore, receipt for shipment does not guarantee shipment. The seller does not control the sailing date, but the delivery date of the goods at origin.

What is considered delivery under FCA?

Containerized cargo

• Date the container was loaded at the seller’s facility
• Date of gate-in at container yard

Non contenerized cargo

• The date the goods are loaded onto the vehicle that picks up the goods at the seller’s facility.
• the date of receipt of the goods at the Container Freight Station (CFS) by the carrier

Documentation

Forwarders Cargo Receipt

A Forwarders Cargo Receipt (FCR) is a document issued by the freight forwarder acting as the carrier of the goods. It shows the date of receipt of goods from a seller with the intention of transporting them to a final destination. An FCR contains

• Sellers name and address
• Consignee name and address
• Received location
• Delivery location
• Shippers reference as type of goods, invoice number or PO numbers
• Date of reception

Conclusion

Under the FCA (Free Carrier) Incoterms, the receipt of goods by the carrier does not necessarily indicate that the goods have been shipped. To ensure clarity and proper documentation, sellers are advised to obtain a Forwarder’s Cargo Receipt (FCR) as proof that the goods have been delivered to the carrier or a designated location.

The Bill of Lading, which serves as proof of shipment, is typically issued at a later stage, once the goods have been loaded onto the vessel. It’s important to note that under FCA, the seller’s responsibilities end once the goods are handed over to the carrier. The seller is not accountable for the shipment process, the “on-board” date indicated on the Bill of Lading, or the subsequent handling of the cargo by the carrier. This distinction emphasizes the importance of clearly defining responsibilities and obtaining appropriate documentation to avoid disputes.