Meaning
International commercial terms establish the point at which risk and cost transfer from seller to buyer, and FCA defines the arrangement where the seller delivers the goods to a carrier nominated by the buyer at a named place. Under this agreement, the seller completes export clearance and hands over the shipment. The buyer assumes all subsequent transport risks and shipping costs from the named delivery point onward.
Risk Transfer
Risk transfers to the buyer as soon as the goods are loaded onto the carrier’s vehicle at the seller’s premises. If the named place is another location, the transfer occurs when the goods are placed at the disposal of the carrier on the seller’s transport ready for unloading. This division of responsibility governs the procurement of insurance for battery cells in transit.
Logistical Responsibility
Buyer representatives organize the main carriage and choose the freight forwarder. The seller must still provide all necessary documentation to facilitate the export process. This arrangement gives the buyer control over shipping schedules and routing.
Commercial Application
Sourcing managers choose this term to coordinate multi-modal transport chains for raw materials and battery components. It allows the purchasing organization to consolidate shipments from multiple suppliers at a single hub. The flexibility of this term makes it common in high-volume cell supply contracts.
