Free carrier is a trade term where the seller is responsible for the delivery of goods to a specific destination. Typically, the destination is a named airport, terminal or other place where the carrier operates. The seller includes transportation costs in its price, and the seller assumes the risk of loss until the carrier receives the goods. At this point, the buyer assumes all responsibility.
Traders can use an FCA to describe any transportation point, regardless of the number of transportation modes involved in the shipping process, but it must be a location within the seller’s home country. Once the seller delivers the goods to the agreed port or area, the liability transfers from the seller to the carrier or buyer. As part of the liability transfer, the seller is only responsible for delivery to the specified destination, not unloading the goods. However, the seller may be responsible for ensuring the goods have cleared customs before the shipment may be accepted.