Where does risk transfer?
At the seller’s premises: when loaded onto the buyer’s vehicle. At another place: when placed at the carrier’s disposal, ready for unloading.
Clarify responsibilities before negotiating.
Select a rule and compare the delivery point with the destination of paid carriage. These can be different places.
FCA
Free Carrier
Any mode or combination of transport modes
FCARead transport and risk separately
Indicative diagram. For multimodal rules, main carriage may be by road, air or sea. The exact place depends on the contract; duties, insurance and unloading are reviewed separately.
The carrier represents the agreed delivery point, which need not be a port. Under FCA it can be the seller’s premises or another agreed place.
Who arranges and pays for it?
Buyer
Customs
Seller: export clearance. Buyer: import clearance.
Insurance
No obligation between the parties
No obligation to arrange insurance.
Specify the delivery point. Consider this option for containerised goods.
Two rules, side by side.
Choose any pair and check what changes for the seller and buyer.
The general risk-transfer point is the same. Check who pays for transport and insurance.
| Responsibility | FOB | CIF |
|---|---|---|
| Transporte | Marítimo y fluvial | Marítimo y fluvial |
| Delivery and transfer of risk | On board the vessel at the port of shipment. | On board the vessel at the port of shipment. |
| Main carriage | Buyer | Seller, to the destination port |
| Export clearance | Vendedor | Vendedor |
| Import clearance | Buyer | Buyer |
| Seller’s insurance obligation | No obligation between the parties | Seller · ICC (C), unless otherwise agreed |
| Unloading at destination | Buyer at destination | According to the contract of carriage |
FOBRead transport and risk separately
Indicative diagram. For multimodal rules, main carriage may be by road, air or sea. The exact place depends on the contract; duties, insurance and unloading are reviewed separately.
CIFRead transport and risk separately
Indicative diagram. For multimodal rules, main carriage may be by road, air or sea. The exact place depends on the contract; duties, insurance and unloading are reviewed separately.
Under C rules, paying for carriage to destination does not mean retaining risk until arrival. Check unloading charges included in the contract of carriage with the carrier.
Specify the place precisely
The contract must identify the rule, place or port, and version. For example: “FCA [exact delivery address], Incoterms® 2020”. Specifying the location helps avoid different interpretations.
What to agree separately
Price, payment method, transfer of ownership, goods specifications and dispute resolution need their own terms. This guide summarises typical responsibilities; check the official rules and your contract.
Turn your dimensions into a load plan.
Compare containers and arrange your pallets with TuCone Cargo.