FCA vs Ex Works

FCA (Free Carrier) and Ex Works are commercial terms used internationally. FCA and Ex Works are terms that are part of Incoterms or the International Commercial terms. The International Chamber of Commerce has dictated these terms. There is only a slight difference between the two terms.

Both the FCA And Ex Works are related to the transportation or shipping of goods from the worksite or the factory. In both FCA and Ex Works, the buyer has more obligations than the seller.

What is meant by Ex Works? It means that the seller has only the responsibility to make the goods available at the premises like the worksite or the factory. As per this term, the seller is not responsible for loading the goods on the vehicles of the buyers. The seller would not bear the cost of loading and transportation, and the entire amount has to be borne by the buyer only. The seller would also not take the risk of the goods once they are transported. So this term specifies that the buyer has more obligations than the seller.

Now let us look at FCA. Free Carrier is just the opposite of Ex Works. Here in FCA, the seller is responsible for the arrangement of transportation. However, the seller would be making the arrangements on behalf of the buyer. Moreover, the buyer has to pay for the transportation. The buyer is also responsible for the insurance covered. Though the seller makes all the arrangements for the shipping or transportation of goods, he does not take any responsibility or any risks.

Summary:

1.Both FCA And Ex Works are related to the transportation or shipping of goods from the worksite or the factory.
2.Ex Works means that the seller has only the responsibility to make the goods available at the premises like the worksite or the factory. The seller is not responsible for loading the goods on the vehicles of the buyers.
3.In FCA, the seller is responsible for the arrangement of transportation. However, the seller would be making the arrangements on behalf of the buyer.
4.Both the terms state that the seller would not take the risk for the goods once they are transported.
5.The seller would not bear the cost of loading and transportation, and the entire amount has to be borne by the buyer only.

Read more: Difference Between FCA and Ex Works | Difference Between http://www.differencebetween.net/language/words-language/difference-between-fca-and-ex-works/#ixzz7Uwjqv8gL