What does FCA Kolkata mean in our quotes?

Our quotes use FCA Kolkata under Incoterms 2020. Here is where the goods change hands, who books the freight, and why we do not quote FOB by default.

Published . Written by the partners of Vaishvik Exports LLP.

The short answerFCA Kolkata means we clear the goods for export and hand them to your carrier or forwarder at a place in Kolkata that the quote names. From that handover, the freight, the insurance and the risk are yours. Your forwarder books the main freight from there.

Incoterms are the International Chamber of Commerce's standard trade terms. They say where the seller hands the goods over, and who pays for and carries the risk on each part of the journey. The current edition is Incoterms 2020. They apply because both sides write them into the contract.

Where the goods change hands

Under FCA (Free Carrier), the seller delivers the goods to the buyer's carrier, or to a person the buyer names, at an agreed place. The ICC Academy explains the two cases:

  • If the place is the seller's premises, delivery happens once the goods are loaded onto the buyer's collecting vehicle.
  • If the place is a terminal, such as a container freight station or the airport cargo terminal, delivery happens when the goods arrive there ready to be unloaded.

Every quote we send names that place. "FCA Kolkata" on its own is not enough, so we write the exact handover point.

What we do, and what you do

We: make sure the goods match your written specification, pack them, take them to the named place, and clear them for export from India in our name.

You, or your forwarder: book the main freight by sea or air, insure the goods if you want cover, and clear them through customs in your country. Freight is quoted from the handover in Kolkata, so ask your forwarder for a price from there.

Why not FOB by default

FOB (Free On Board) passes the risk when the goods are on board the ship. The ICC says FOB is to be used only for sea or inland waterway transport. Container goods are usually handed over at a container yard days before they are loaded, so under FOB the seller carries the risk on a part of the journey it does not control. FCA puts the handover where it really happens, and it works for air freight too.

If your sea shipment must be FOB Kolkata, tell us in writing and we will quote it that way.

What this does not cover

Incoterms do not set the price, the payment terms or who owns the goods. Those go in the contract. Your own customs broker has the final word on your import side.

To ask for a quote, send us your specification.

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