FCA

Seller's obligations under FCA

When you, as a sender, work under such a contract, your obligations consist of: preparing and packaging the goods for export so that everything meets the requirements and is ready for transportation;

organizing and paying for the delivery of cargo from your warehouse (any other starting point) to the "Named Place" - the agreed transfer point;

completion of all export formalities: declaration, customs procedures, necessary documents;

delivery of the cargo to the carrier appointed by the buyer, at the specified place, at the agreed time (up to this point, all responsibility and risks are borne by the seller).

As a result, once the cargo is transferred to the first carrier, the seller's obligations end and are considered fulfilled.

Buyer's obligations under FCA

After the goods are transferred to the carrier, the responsibilities and risks pass to the buyer, and he is now obliged to:

bear the main costs of further transportation (freight, multimodal movements and other related processes and works);

organize and pay for the load for the main part of the route (if this was not done at the place of delivery of the goods);

draw up a contract with a shipping/transport company, agree on a flight or route;

if necessary, provide insurance (FCA conditions do not provide for mandatory insurance by the seller);

therefore, be responsible for the cargo from the moment it is handed over to the carrier: risks of damage, loss and all subsequent costs of logistics and delivery to the final destination;

• as well as everything related to import - customs duties, clearance, door-to-door delivery, unloading, etc.
  

  Why do customers choose these terms?

  FCA is a rational, flexible and quite common delivery option for international trade. It is beneficial for both parties: the seller is responsible for exporting and transferring the cargo to the first carrier, and the buyer controls further logistics, chooses the carrier, route, while having the opportunity to optimize costs and terms.

  Their key advantages are:

  Depending on the type of transport: select sea, road, transport, air, multimodal transport;

  control on the side of the buyer over the main freight: freedom to choose a carrier, route, vessel, flight, which gives more control possibilities, as well as the choice of favorable tariffs, favorable terms and additional services;

  minimum of the seller's reliability: the carrier is only responsible until the cargo is transferred to the first carrier, after which the risk is borne by the buyer (for the seller - at a minimum of risks, especially if the further part of the route is distant, difficult or includes unstable plots);

  simplified formalities for an experienced buyer: if you, as the recipient, have well-established logistics and reliable partners, such conditions will be very convenient for you and will help you control delivery without unnecessary costs.

  What to pay attention to: nuances and risks

  Although FCA is a fairly convenient and common option, there are some points that must be considered:

  It is very important to clearly indicate the "Named Place" - the exact place where the cargo will be transferred, as ambiguity can lead to disputes, confusion and, as a result, delays;

  the buyer needs to independently organize the entire further route: choose a transport company, agree with a logistician, provide insurance, import formalities - this requires experience and the presence of reliable partners;

  -the seller is responsible until the moment the goods are transferred, which means that packaging, preparation for export, compliance with export rules, and correct documentation at this stage are his responsibility (and mistakes here can seriously affect further logistics);

  For valuable, fragile, special cargo, it is important to arrange insurance in advance, otherwise the risk remains with the buyer.

  For Mitridat FCA is a particularly good option: with our international network of representative offices, experience in processing export and import documents, as well as container transportation, we can ensure competent preparation of the cargo and its transfer to a reliable place - and then the client continues the logistics himself, according to his preferences and needs. However, if necessary, we can offer our transport and logistics services to the recipient, becoming his reliable partner.

  As a result, with the correct execution of the contract, a clear definition of the place of cargo transfer, cooperation with proven carriers and, if necessary, insurance, such conditions work quite effectively and conveniently for both parties to the cargo transportation.