Comments on: Incoterms basics with an international business training instructor

By: Emiliano Introcaso

Emiliano Introcaso — Tue, 06 May 2014 16:01:00 +0000

In reply to Lora Rigutto V. Lora: without knowing the specifics of the contract it will be very difficult to answer, but just for what I gather from the information you have sent, in this case FCA will mean that the risk passes after the shipper loaded the goods into the buyers carrier.

By: Lora Rigutto V

Lora Rigutto V — Mon, 05 May 2014 14:18:00 +0000

In reply to Emiliano Introcaso. In a contract I was reviewing last week, the buyer suggest FCA Shipping Point. What the buyer means is that the seller delivers goods to address as designated by buyer and title passes at buyer's dock. Is this a correct use of the term FCA?

By: Emiliano Introcaso

Emiliano Introcaso — Sun, 04 May 2014 08:42:00 +0000

In reply to Peter Warburton. Thank you Peter for your comment. There are also shippers that use FOB as way of EXW but loading at their dock (loaded by the shipper). For these cases is usually recommend FCA (and the city name where the shipping docks are located)

By: Peter Warburton

Peter Warburton — Thu, 01 May 2014 15:45:00 +0000

This is indeed a common problem in North America where many companies still use FOB or F.O.B. indiscriminately when they often actually mean Ex-works (EXW). Unless you have the sea or a canal outside your freight dock, the correct term is either EXW if the buyer is actually taking it off your freight dock or FCA (free on carrier) if you are putting it on a truck or plane. In theory INCO term errors can be flagged as a discrepancy in a Letter of Credit and cost you delays and discrepancy fees…….

Get the ICCs handy INCOterms poster and pin it up somewhere!