FCA vs FOB – who pays for what?
FCA is Free Carrier and FOB is Free On Board. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.
Key differences
FCA and FOB look identical in the cost table. The two rules differ in the point at which risk passes to the buyer and in the mode of transport. FOB applies only to sea and inland waterway transport.
- Risk passes
- FCAOn handover to the carrier in the country of dispatchFOBOn board the vessel at the port of loading
- Mode of transport
- FCAAnyFOBSea only
Full cost breakdown
| Cost | FCA | FOB |
|---|---|---|
| Export clearance | Seller | Seller |
| Transport to the port or terminal | Seller | Seller |
| Loading for main carriage | Seller | Seller |
| Main carriage (freight) | Buyer | Buyer |
| 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 port of loading, when the goods are on board the vessel. |
| Mode of transport | Any 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 →FOB Free On Board
A common mistake: FOB for rail or air freight. FOB applies only to sea and inland waterway transport. For rail freight from China, the right rule is FCA with the name of the terminal (e.g. “FCA Xi’an, rail terminal”), and for air freight, FCA with the name of the airport. Under FOB, the supplier pays for export clearance and the charges at the port of loading – check that they are not added to the invoice separately.
More about FOB →When to use FCA and when to use FOB?
- 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.
- FOB – for sea freight, when the supplier delivers the goods to a port in China and handles export clearance, while your freight forwarder arranges the freight to Europe.
Buying on FCA or FOB 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 FOB?
FCA and FOB look identical in the cost table. The two rules differ in the point at which risk passes to the buyer and in the mode of transport. FOB 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 FOB?
At the port of loading, when the goods are on board the vessel.
Can FCA and FOB be used for rail freight from China?
Only FCA. FCA works with any mode of transport, while FOB applies only to sea and inland waterway transport. That is why FOB is not used for rail freight from China.
Compare other pairs
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.