FCA vs DAP – who pays for what?
FCA is Free Carrier and DAP is Delivered at Place. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.
Key differences
Under DAP, the seller also covers the main freight. Under FCA, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer.
- Main carriage (freight)
- FCABuyerDAPSeller
- Risk passes
- FCAOn handover to the carrier in the country of dispatchDAPAt the place of destination, before unloading
Full cost breakdown
| Cost | FCA | DAP |
|---|---|---|
| Export clearance | Seller | Seller |
| Transport to the port or terminal | Seller | Seller |
| Loading for main carriage | Seller | Seller |
| Main carriage (freight) | Buyer | Seller |
| Insurance | No obligation | No obligation |
| Unloading at destination | Buyer | Buyer |
| Import clearance | Buyer | Buyer |
| Import duty and VAT | Buyer | Buyer |
| Risk passes | When the seller hands the goods over to the buyer’s carrier: at the seller’s premises – once they are loaded; at another place (e.g. a terminal) – when the goods are on the seller’s means of transport, ready for unloading. | At the place of destination, when the goods are ready for unloading from the arriving means of transport. |
| Mode of transport | Any mode of transport (sea, rail, air, road) | Any mode of transport (sea, rail, air, road) |
Notes
- FCA – transport to the port or terminal and loading depend on the place of delivery. If it is the seller’s premises, the seller loads the goods onto the buyer’s vehicle, and transport to the port or terminal is then the buyer’s responsibility. If it is another place (e.g. a terminal), the seller brings the goods there on its own means of transport, and unloading them is the buyer’s responsibility.
- Unloading at destination: if unloading costs are included in the contract of carriage concluded by the seller, the seller pays them and cannot charge them to the buyer afterwards.
What to watch for when importing from China
FCA Free Carrier
FCA has two variants. If the place of delivery is the factory, the supplier loads the goods onto the vehicle you send. If it is a terminal or your forwarder’s warehouse, the supplier only delivers the goods there, and unloading is your responsibility. State the exact place in the contract, e.g. “FCA Ningbo, forwarder’s warehouse”, not just “FCA Ningbo”.
More about FCA →DAP Delivered at Place
The supplier delivers the goods to the agreed address, but import clearance, duty and VAT are your responsibility. A “DAP Warsaw” price is therefore not the final price – add duty, VAT and the cost of customs clearance. State the exact address, because “DAP Poland” is not enough. Unloading is also your responsibility.
More about DAP →When to use FCA and when to use DAP?
- FCA – for container shipments and for rail freight from China, when the supplier is to handle export clearance and deliver the goods to the terminal (e.g. Xi’an, Chengdu), and you arrange transport to Poland.
- DAP – when the supplier is to deliver the goods to your address, and you want to keep customs clearance in your own hands. With a new supplier, it is a safer alternative to DDP.
Buying on FCA terms? You choose the forwarder
We organise transport from China – by rail, sea or air – together with customs clearance in Poland and cargo insurance. Send us your cargo details and we will prepare a quote tailored to your shipment.
Request a quoteFAQ
What is the main difference between FCA and DAP?
Under DAP, the seller also covers the main freight. Under FCA, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer.
Where does risk pass to the buyer under FCA?
When the seller hands the goods over to the buyer’s carrier: at the seller’s premises – once they are loaded; at another place (e.g. a terminal) – when the goods are on the seller’s means of transport, ready for unloading.
Where does risk pass to the buyer under DAP?
At the place of destination, when the goods are ready for unloading from the arriving means of transport.
Can FCA and DAP be used for rail freight from China?
Yes. FCA and DAP can be used with any mode of transport: sea (including containers), rail, air and road.
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Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is an independent, simplified summary of how costs and risks are divided – it is not affiliated with or approved by the ICC. When drafting contracts, use the official text of the Incoterms® 2020 rules published by the ICC.