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Difference between FCA and FOB in Similar Articles

terms of Delivery of goods
Posted on 04 January 2019 Category : Inco Terms (/Inco-Terms/default.aspx) Unclean Bill of
Lading/Claused bill of
lading/foul bill of
lading/Dirty Bill of
Lading (/Unclean-Bill-
The information provided here is part of Export Import Online Tutorial of-Lading-Claused-bill-
of-lading-foul-49.aspx)

What is Combined Bill

of Lading / Multi model
Difference between FCA and FOB in terms of Bill of Lading (/What-
is-Combined-Bill-of-
Delivery of goods. Lading-Multi-model-
Bill-o-50.aspx)

How to differentiate FOB and FCA in term of delivery? We have discussed Bill of Lading
about FCA and FOB in detail in this web blog separately. I hope the procedures in
triangular shipment
contents of those articles are easy to understand. Let me state in simple
What is switch Bill of
explanation on FOB Vs FCA. Lading? (/Bill-of-
Lading-procedures-in-
triangular-shipment-
W-105.aspx)
(/UserFiles/Windows-Live-Writer/Difference-between-FCA-
and-FOB-in-terms-_E1F5/Difference-between-FCA-and-FOB- Difference between
Airway Bill and Bill of
in-te%5B2%5D.jpg)FCA terms of delivery were introduced under
Lading. (/Difference-
between-Airway-Bill-
 international commercial Terms 2010. The and-Bill-of-Lading--
467.aspx)
term FOB has been being continued for the
past many decades, however after 2010 FOB Clean On board Bill of
Lading Vs. Shipped On
terms of shipping has been included in the
board Bill of Lading
smaller groups. (/Clean-On-board-Bill-
of-Lading-Vs-Shipped-
On-board--544.aspx)

What is a FOB term in easy language?

Terms used in
In an FOB terms of delivery, the seller delivers the goods on board the international trade
business such as
vessel at his own cost. The rest of expenses and risk of on carriage to final
Nuclear suppliers
destination bears by the buyer. In an export shipment, once the goods group,Ocean bill of
lading,Offset,On a bill
ready for export, the shipper arranges to move cargo to load port after
of lading,On
necessary customs formalities. The goods are loaded on board the vessel Consignment (/Terms-
used-in-international-
at the cost of exporter. This is the simple explanation on FOB terms. Also
trade-business-such-
read Basic tips to exporter while contracting terms of delivery on as-2042.aspx)

FOB basis (/Basic-tips-to-exporter-while-contracting-terms-of--

Terms used in freight
29.aspx) . Who decides shipping carrier on FOB shipments forwarding such as
(/Who-decides-shipping-carrier-on-FOB-shipments-340.aspx)? Master Air
Waybill,Master Bill Of
Lading,Material
Circumstance,Medical
First Aid Guide,Metric
ton,Minimum Bill of
Lading (/Terms-used-
in-freight-forwarding-
such-as-Master-Ai-
What is FCA terms of shipping in quick reference? 1895.aspx)

Terms used in
In terms of delivery FCA, the export cleared goods are delivered by the
shipping such as
seller to the carrier at the named and defined location mentioned in the straight bill of
lading,ocean bill of
contract. So the obligation to deliver goods fulfills by the seller up to the
lading,inland bill of
location where FCA contracts. From the said point of location, buyer needs lading,freight b/l,b/l
numbers,negotiable b/l
to take responsibility. In an FCA terms of delivery, normally seller’s
(/Terms-used-in-
assistance is required by the buyer to deliver goods at contracted place at shipping-such-as-
straight-bill-of-la-
buyer’s costs and risks. If the location to deliver goods has not been
2057.aspx)
mentioned in the contract, the seller can arrange to deliver the goods to the
location where buyer’s carrier is available by mutually accepting. In an Terms used in freight
forwarding such as
FCA terms of delivery, the delivery of goods also can be at the seller’s
claused bill of
premises, if mutually agreed between buyer and seller. However in such lading ,classification
yard,clip-on-
transactions, the ex-works terms are used. FCA terms are commonly used
unit,certificate of
on container transport movement as RO/RO (roll on – roll off) used by origin (/Terms-used-in-
freight-forwarding-
trailers and ferries. If the buyer can not carry out the export formalities,
such-as-claused-b-
1968.aspx)
either directly or indirectly, FCA terms are opted in such business Bill of Lading, more
transactions also. I hope, the FCA terms are explained in easy to facts (/Bill-of-Lading-
more-facts-4374.aspx)
understand.

In short, under FOB terms, the seller completes all export formalities and
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delivers goods to get on board the vessel arranged by buyer. However in
FCA terms, the seller’s liability to deliver goods fulfills, once after loading Bulk e-way bill
goods to the carrier appointed by buyer which is prior to onboard the main generation (/Bulk-e-way-
bill-generation-
vessel. The goods need to be gone onboard the vessel under FOB terms, 21355.aspx)
where as the fulfillment of obligation to deliver goods by the seller ends,
when loading of goods to the carrier at the location agreed mutually in FCA 34th GST Council
Meeting held on 19th
terms. Also read FCA Term of Delivery, a simplified tutorial March, 2019 - Major
decisions (/34th-GST-
(/FCA-Term-of-Delivery-a-simplified-tutorial-500.aspx) Mode
Council-Meeting-held-
of transport under EX on-19th-March-2019-M-
21353.aspx)
WORKS/FCA/CPT/CIP/DAT/DAP/DDP/FAS/FOB/CFR/CIF
(/Mode-of-transport-under-EX-WORKS-FCA-CPT-CIP-DAT- Authorized Economic
D-543.aspx) Operator (AEO)
Certificate (/Authorized-
Economic-Operator-
AEO-Certificate-
Detailed articles about Inco Terms of Delivery under export and import 21352.aspx)
of International business have been mentioned in separate category
CUSTOMS Notification
– INCO TERMS (/Inco-Terms/default.aspx) – in this web site.
No 07 of 2019 dated
You can click here to read. 15th March, 2019
(/CUSTOMS-
Notification-No-07-of-
(/Inco-Terms/default.aspx) 2019-dated-15th-Marc-
21351.aspx)

This is the simple explanation on difference between FCA and FOB. Do CUSTOMS (N.T.)
Notification No 22 of
you have different thought on FCA vs.. FOB? 2019 dated 15th March,
2019 (/CUSTOMS-N-T-
Notification-No-22-of-
2019-dated-15th--
21350.aspx)

CUSTOMS (ADD)
Notification No 13 of
The above information is a part of Import Export Training online 2019 dated 14th March,
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Export goods to FOB shipments Basic tips to Who decides
Tanzania - Be Responsibility of exporter while shipping carrier on
Certified by SGS buyer and seller contracting terms... FOB shipments
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Documents required dry cargo containers Difference between Inco terms,

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Comments

Caroline Laufer : On 20 January 2014

Thank you for the explanation . Is both can be used for air & sea
shipment ?

Surendran Kollerath: On 10 March 2014

Hi Caroline, You may read http://howtoexportimport.com/Mode-of-
transport-under-EX-WORKS-FCA-CPT-CIP-DAT-D-543.aspx

Florian Pavel: On 17 February 2015

I work for a company who produces shoes in India and sells them further
to clients in Europe. We have clients who ordered on a FOB Port India
basis (delivery condition), and D/P payment condition. Meaning when we
receive the B/L we issue the client invoice and the client makes the
payment accordingly. All good until here.Now we want to change the
delivery conditions to FCA so we pass more of the responsibility of the
shipment to the client. My question is: Is there a possibility that the client
can pay the client invoice before the receipt of BL? Meaning when we
hand over the goods to their forwarder, according to the document issued
when they receive the goods?
 Shashi Patel : On 15 October 2015

I am Civil Engg and proprietor of my Co. railways contractor for turn key
projects of S&T , new to Impot/Export business. At present I am working
on viability study of exporting de icing salt to Some purchaser in S korea
who has offered CIF rate for the product. I have got product rate from
manufacturer and its handling cost ie FOB/kandla price. Now am looking
for good freight forwarder with CHA license who could do his part in
exporting de icing salt from kandla/ Mudra port to S korea.
50000MT+-10%, Bulk shipment, no need bag, two port discharge,
Pyeongtaek port and kun San .I have apprehension about the product to
be exported also from custom side. How to go ahead now, if you can
guide me .

Dan: On 29 December 2015

When does the legal 'transfer of title' (to the goods) occur when using
FCA shipping terms?

Mohammad Enayet Ullah: On 07 February 2016

Please easy describe about Shipping Agent, Carrier and forwarder.

MUHAMMAD IMRAN: On 16 April 2016

pl clarif may we use incoterm fob in by air shipment or other

Amit Kumar: On 22 August 2018

Does FOB charges applicable in FCA shipment?

Bhargav: On 28 December 2018

We have project where delivery needs to be quoted on FOB International

sea port basis. In this case can we use bonded ware in india and declare
them as FOB bonded ware house

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