FREE CARRIER (FCA) PART II – The Seller’s Obligations According to the International Chamber of Commerce (ICC) the second Incoterm Free Carrier (FCA), at a named place, is defined as “the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. The chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller’s premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading”. Professor Jan Ramsberg, the chairman of the ICC Working Party on Trade Terms, identified ten obligations that the seller might need to fulfil in terms of Free Carrier: (1) the provision of goods in conformity with the contract; (2) licences, authorisations, and formalities; (3) contracts of carriage and insurance; (4) delivery; (5) transfer of risks; (6) division of costs; (7) notice to the buyer; (8) proof of delivery, transport documents or equivalent electronic message; (9) checking, packaging, marking; and (10) other obligations. The provision of goods in conformity with the conrtact implies that the seller must provide the commercial invoice and documents stipulated in the contract of sale. In respect of the licences, authorisations and formalities, the seller must obtain all licences and authorisation, and carry out all customs formalities for the export of the goods. The seller has no obligation in respect of the contracts of carriage and insurance, however if requested the seller may contract for carriage at the buyer’s risk and expense. In respect of the delivery of the goods, here the seller must deliver the goods to a carrier or any person nominated by the buyer or chosen by the seller at the named place on the date or within the period agreed for delivery. As for the transfer of risks, the seller bears all risks of the loss or damage to the goods until delivery has taken place at the named place. In relation to the division of costs, the seller must pay all the costs relating to the goods up to the delivery at the named place, and in certain instances the costs, of duties, taxes, and other charges payable on export. The seller must give sufficient notice to the buyer that the goods have been delivered. If the carrier fails to take delivery at the agreed time, the seller needs to inform the buyer. The seller must provide the buyer with proof of delivery, transport documents or equivalent electronic message. The checking, packaging, marking costs are for the seller’s account. As for other obligations, the seller must assist the buyer in obtaining any necessary documentation, as well as those required for procuring insurance. Next week’s issue will focus on the buyer’s obligations under Free Carrier (FCA).
