Courier services have become an inevitable part of our lives. However, it may be hard to choose the most appropriate career service.
FCA and Ex-Works are two types of courier services offered to customers.
While the two offer services of transportation to the buyers, they vary considerably.
Key Takeaways
- “FCA” stands for Free Carrier Agreement, which means the seller is responsible for delivering the goods to a carrier or a person nominated by the buyer at a specified place and time.
- “Ex Works” is a trade term that indicates that the seller has fulfilled their obligation to deliver the goods to the buyer at the specified location.
- The main difference between “FCA” and “Ex Works” is that the former requires the seller to deliver the goods to a carrier or a person nominated by the buyer, while the latter requires the buyer to arrange for transport.
FCA vs Ex Works
The difference between FCA and Ex-Works is that FCA agents deliver the products to the location specified by the buyer in advance. In contrast, Ex Works agents are only responsible for the delivery of the item at the factory site. Thereafter, it is the sole responsibility of the buyer.
FCA refers to a form of trade wherein the seller has to deliver the product to the location specified by the final consumer.
An advantage of FCA is that the buyer doesn’t have to bother regarding any export details and licenses because it is the primary duty of the seller.
Ex-works refers to an international shipping term. It segregates the responsibility of the delivery item between the buyer and seller.
The risks and the shipping costs associated with Ex works items are the sole duty of the buyer. Thus, the seller holds no legibility to pay for transportation costs.
Ex-works has an application to cover only the limited responsibilities associated with the delivery of items.
Comparison Table
| Parameters of Comparison | FCA | Ex Works |
|---|---|---|
| Definition | FCA refers to a form of trade wherein it is the duty of the seller to deliver the product to the location specified by the final consumer. | Ex works segregates the responsibility of the delivery item between the buyer and seller. |
| Site of delivery | FCA agents deliver the products to the location specified by the buyer in advance. | Ex Works agents are only responsible for delivering the item at the factory site. |
| Examples of delivery location | The location of delivery is a warehouse, airport, shipping terminal, or any other destination where the carrier operates. | The location of delivery is a factory site. |
| Suitable for | FCA is suitable for international trade. | Ex works are suitable for domestic trade. |
| Unloading responsibility | FCA is responsible for the unloading of the delivery item. | Ex Works plays no role in unloading. |
What is FCA?
FCA, also known as a free carrier, refers to a form of trade wherein the seller has to deliver the product to the location specified by the final consumer.
Here, the word free implies that the seller must deliver the item to the place specified in advance.
Once the product is delivered, the buyer bears all the risks and costs.
The location of delivery is a warehouse, airport, shipping terminal, or any other destination where the carrier operates.
The transportation costs are included in the price. Till the time of delivery, the responsibility of the product is towards the carrier.
In the case of FCA, the carrier is not obligated to unload the goods.
An advantage of FCA is that the buyer doesn’t have to bother regarding any kind of export details and licenses because it is the primary duty of the seller.
FCA is responsible for the unloading of the delivery item. The buyer has the provision to choose the location of delivery that best suits his interest.
An example of FCA is when Sam’s seller ships goods to Jacob’s buyer. Jacob agrees to use his shipper, with whom he has done business before.
Sam agrees, and he must deliver the products to the shipper. After this, the responsibility passes to Jacob. Thus, FCA is an ideal courier service.
What is Ex Works?
Ex-works refers to an international shipping term. It segregates the responsibility of the delivery item between the buyer and seller.
In this situation, the buyer is responsible for covering the transportation costs.
Once the product is delivered to the specified location, it becomes the buyer’s asset.
The seller has no obligation to load the delivery item on the buyer’s vehicle.
The main responsibility of the ex-works facility is to pack the delivery item, label it appropriately, and effectively deliver them to the destination specified by the buyer.
The insurance of the product is also looked after by the buyer in case of the ex-works services.
The International Chamber of Commerce has sanctioned ex-works.
The risks and the shipping costs associated with Ex works items are the sole duty of the buyer. Thus, the seller holds no legibility to pay for transportation costs.
Ex-works has an application to cover only the limited responsibilities associated with the delivery of items.
But, it provides an additional advantage to the buyers in the form of controlling the shipping charges.
Thus, the buyer can ensure that the seller doesn’t charge them a significantly higher shipping fee for the product.
Main Differences Between FCA and Ex Works
- FCA refers to a form of trade wherein the seller must deliver the product to the location specified by the final consumer. In contrast, Ex Works segregates the responsibility of the delivery item between the buyer and seller.
- FCA is suitable for international trade. On the other hand, Ex-works are suitable for domestic trade.
- FCA agents deliver the products to the location specified by the buyer in advance. In contrast, Ex Works agents are only responsible for delivering the item at the factory site.
- FCA agents deliver the products to the location specified by the buyer in advance. In contrast, Ex Works agents are only responsible for delivering the item at the factory site.
- FCA is responsible for the unloading of the delivery item. On the other hand, Ex Works plays no role in unloading.
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
The distinction between the two courier services is aptly described, providing a deeper understanding of the implications and responsibilities of each.
The responsibility breakdown of FCA and Ex-Works is well presented, making it easier to comprehend the roles of both the buyer and seller in each type of service.
The practical examples given for both FCA and Ex-Works help in illustrating how these services work in real scenarios. Very insightful.
The distinction between FCA and Ex-Works is very clear and is well explained in this article. Thank you.
I really appreciate the detailed comparison table. It makes it much simpler to see the contrast between FCA and Ex-Works.
The article offers a detailed understanding of how FCA and Ex-Works operate, which is valuable for anyone involved in the logistics industry.
The advantages of both FCA and Ex-Works are clearly explained, providing a great insight into their respective benefits and drawbacks.
This article provides a comprehensive understanding of FCA and Ex-Works, making it easier for readers to grasp their differences.