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  • WTO issues 2020 Annual Report May 28, 2020
    The WTO’s Annual Report, published today (28 May), provides a comprehensive account of the organization’s activities in 2019 and early 2020. The Report opens with a message from Director-General Roberto Azevêdo and a brief overview of the year. This is followed by in-depth accounts of the WTO’s main areas of activity over the past 12 […]
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  • 2020 WTO Public Forum cancelled May 28, 2020
    After careful consideration of COVID-19 related uncertainties and health concerns, the WTO has decided to cancel this year’s WTO Public Forum, scheduled for 29 September to 2 October. This decision responds to the complexities around planning to host thousands of people from around the world for a public event under the WTO roof, as well […]
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  • DDG Wolff: This is the time to consider the future of the multilateral trading system May 27, 2020
    The outbreak of the COVID-19 pandemic has heightened the urgent need to examine the underlying principles and values of the WTO and whether the organization needs change, Deputy Director-General Alan Wolff said on 27 May. Speaking at a webinar hosted by the Korean International Trade Association, DDG Wolff called for immediate action to control the […]
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  • Members discuss impact of COVID-19 on developing economies’ participation in world trade May 26, 2020
    On 26 May, WTO members assessed the impact of the COVID-19 pandemic on the trading capacity of developing countries in a virtual meeting of the Committee on Trade and Development. The new chair, Afghanistan’s WTO Ambassador, Mohammad Qurban Haqjo, said: “Trade must form part of the solution in assisting and supporting recovery in developing countries.”
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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.