How does seller benefited under FCA delivery rules?
Here, let us discuss about the advantages for exporters when delivery terms are on FCA basis.
The following 07 advantages for exporters are explained when contract of carriage is on FCA basis in export import trade.
01. The Seller is liable for minimum risk and cost involved under movement of goods when delivery terms are on FCA basis. In export import trade, once goods are loaded to the means of carrier or placed at the disposal of the buyer, the exporter transfers his risks and costs to importer to reach the goods to final destination of buyer. This is one of the most advantages for exporter under FCA terms of delivery.
02. Another benefit for seller is that under FCA terms, the importer need not spend more amounts to move goods to his place. So, the investment of Exporter to business minimize up to that extend under FCA delivery rules, thereby total invoice value of goods.
03. Since the exporter is responsible for risks and costs till the goods are gone on board the vessel or aircraft, he learns rules and regulations of government to export goods in his country. This is an added advantage for exporter under FCA. Compared to EXW, this is an advantage to Seller to contract with same buyer or other buyers to agree delivery terms as FCA.
04. The seller’s responsibility to safeguard the goods ends when goods gone on board the vessel under FCA terms. The buyer takes care of the safety of goods further. This is a merit for seller under FCA.
05. Another advantage for exporter is that under FCA, the delivery of goods takes place at exporter’s country; further movement of goods are taken care by the buyer.
06. Unloading of goods under FCA is under buyer’s liability and seller is not responsible for any damage of goods while unloading. This is another benefit for seller, if contract of carriage on FCA basis.
07. Under FCA delivery terms, the selection of freight against main carriage is done by the importer thereby risks passes to buyer against the service given by the main carrier or their agent. This is also one of the other advantages for exporter against movement of goods under FCA basis.
The above details are about benefits under FCA terms for exporters. You may share below your experience in handling FCA and its advantages to the seller: