FCA vs FAS – who pays for what?

FCA is Free Carrier and FAS is Free Alongside Ship. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.

Key differences

Under FCA, the seller also covers loading for main carriage. Under FAS, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer and in the mode of transport. FAS applies only to sea and inland waterway transport.

Loading for main carriage
FCASellerFASBuyer
Risk passes
FCAOn handover to the carrier in the country of dispatchFASAlongside the ship at the port of loading
Mode of transport
FCAAnyFASSea only

Full cost breakdown

CostFCAFAS
Export clearanceSellerSeller
Transport to the port or terminalSellerSeller
Loading for main carriageSellerBuyer
Main carriage (freight)BuyerBuyer
InsuranceNo obligationNo obligation
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Import duty and VATBuyerBuyer
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 port of loading, when the goods are placed alongside the ship (e.g. on the quay).
Mode of transportAny mode of transport (sea, rail, air, road)Sea and inland waterway transport only

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.

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 →

FAS Free Alongside Ship

FAS is hardly ever used for containers, because a container is handed over at the terminal several days before loading. It makes sense for bulk and oversized cargo – for containers, FCA is the better choice.

When to use FCA and when to use FAS?

  • 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.
  • FAS – for bulk and oversized cargo in sea freight, when the buyer arranges loading on board.

Buying on FCA or FAS 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 FAS?

Under FCA, the seller also covers loading for main carriage. Under FAS, the buyer pays for this instead. The two rules also differ in the point at which risk passes to the buyer and in the mode of transport. FAS applies only to sea and inland waterway transport.

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 FAS?

At the port of loading, when the goods are placed alongside the ship (e.g. on the quay).

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

Only FCA. FCA works with any mode of transport, while FAS applies only to sea and inland waterway transport. That is why FAS is not used for rail freight from China.

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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.