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  • Items proposed for consideration at the next meeting of Dispute Settlement Body February 28, 2020
    The WTO Secretariat has circulated a meeting notice and list of items proposed for the next meeting, on 28 February 2020, of the Dispute Settlement Body, which consists of all WTO members and oversees legal disputes among them. The meeting notice is circulated in the form of a document officially called an “airgram”.
    WTO
  • US donates USD 600,000 to further developing countries’ trading capacities February 25, 2020
    The United States contributed USD 600,000 (CHF 590,000) in 2019 to help developing and least-developed countries (LCDs) participate effectively in global trade negotiations. This donation will finance training workshops for officials from WTO member governments to help them deepen their understanding of multilateral trade rules and strengthen their negotiating capacity.
    WTO
  • Lithuania donates EUR 50,000 to enhance developing countries’ trading capacity February 24, 2020
    Lithuania is contributing EUR 50,000 (CHF 53,000) to help developing and least-developed countries take an active part in global trade negotiations. The contribution was acknowledged by Director-General Roberto Azevêdo at a meeting with Lithuania’s Minister of Foreign Affairs, Linas Linkevičius, on 24 February 2020.
    WTO
  • Third anniversary of Trade Facilitation Agreement sees increasing implementation rate February 22, 2020
    Three years since the Trade Facilitation Agreement (TFA) entered into force on 22 February 2017, WTO members have continued to make steady progress in its implementation. Director-General Roberto Azevêdo, on the occasion of the TFA’s third anniversary, welcomed members’ efforts to ensure traders can reap the full benefits of the Agreement.
    WTO

Free Carrier (FCA)




Incoterms 2010

 

Free Carrier

Any type of transport mode, including Multimodal Transport

 Free Carrier Incoterms 2010

This Incoterms® rule is somehow similar to EXW in that, it represents a limited level of commitment.

Indeed, with the Free Carrier (FCA) Incoterms rule, the Seller has basically two obligations.

-Firstly, the Seller must take care of the export custom clearance formalities (export licence for instance) when applicable.

-The second obligation relates to the loading process.

Indeed, if the delivery takes place in the Sellers’ warehouse (or factory e.g.), the Seller must arrange the loading of the goods in the carrier’s vehicle (pre-carriage).

Alternatively, if it has been agreed that the delivery should take in any other named place (carriers ‘facility, e.g.), the Sellers will have to place the goods at the carrier’s disposal ready to be unloaded which is to say that in this case, the seller does not have to arrange the loading in the carrier’s vehicle.

It is worthwhile highlighting this point since in the first case, the transfer of risks takes place as soon as the goods have been loaded while in the second case, the transfer of risks to the buyer occurs as soon as the seller place the goods at the carrier’s disposal.

In each case the Seller has the obligation to provide the proof that the goods have been delivered to the carrier.

The Buyer pays for pre-carriage, main carriage and post carriage costs, Terminal Handling charges (depending on liner terms) and import custom clearance (Taxes, duties, Import licence, VAT etc.…)

Note that if the pre-carrier fails to take the goods at the agreed date, the buyer will be held accountable for any subsequent damage and cost.

Any pre-shipment inspection required by law in the seller’s country, is at the seller’s expense.

Note that the Seller must assist the Buyer for obtaining necessary documents required for organising transportation and insurance with the related costs at the Buyer’s expense.

Usual Documents required:

  • Commercial Invoice
  • Transport documents (forwarder’s certificate of receipt)
  • Export formalities (when applicable)

When should I use the Free Carrier (FCA) Incoterms rule?

Overall we can say that the Free Carrier (FCA) Incoterms rule is well adapted for containerised goods as well as in cases, where the Seller wants to limit the extent of his obligations in respect of international trade transactions.