FCA vs DDP – who pays for what?

FCA is Free Carrier and DDP is Delivered Duty Paid. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.

Key differences

Under DDP, the seller also covers the main freight, import clearance, and import duty and VAT. 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)
FCABuyerDDPSeller
Import clearance
FCABuyerDDPSeller
Import duty and VAT
FCABuyerDDPSeller
Risk passes
FCAOn handover to the carrier in the country of dispatchDDPAt the place of destination, before unloading

Full cost breakdown

CostFCADDP
Export clearanceSellerSeller
Transport to the port or terminalSellerSeller
Loading for main carriageSellerSeller
Main carriage (freight)BuyerSeller
InsuranceNo obligationNo obligation
Unloading at destinationBuyerBuyer
Import clearanceBuyerSeller
Import duty and VATBuyerSeller
Risk passesWhen 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, after import clearance, when the goods are ready for unloading.
Mode of transportAny 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 →

DDP Delivered Duty Paid

The supplier has to act as the importer in Poland: declare the goods for customs clearance and pay duty and VAT. A Chinese supplier is rarely able to do this on its own, so it uses intermediaries. Goods shipped under DDP sometimes do not go through proper import clearance – and it is then the consignee who has a problem with goods that were not legally released for free circulation. With a new supplier, DAP is the safer choice.

More about DDP →

When to use FCA and when to use DDP?

  • 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.
  • DDP – when the supplier is reliable and can legally clear the goods in Poland as the importer, and you want the goods delivered with duty and VAT paid.

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.

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FAQ

What is the main difference between FCA and DDP?

Under DDP, the seller also covers the main freight, import clearance, and import duty and VAT. 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 DDP?

At the place of destination, after import clearance, when the goods are ready for unloading.

Can FCA and DDP be used for rail freight from China?

Yes. FCA and DDP 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.