Transportation Operations LINCS Practice Exam

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What does the term 'Free Carrier' (FCA) indicate?

Sellers must deliver products to a specified warehouse
Sellers have certain responsibilities when delivering to carriers
A type of insurance for transported goods
Goods must be free of customs duties

The correct answer is: Sellers have certain responsibilities when delivering to carriers

The term 'Free Carrier' (FCA) refers to an Incoterm that specifies the responsibilities of the seller in relation to the delivery of goods. Under FCA, the seller's obligation is to deliver the goods, cleared for export, to a carrier or another party nominated by the buyer at a specified location. This means that the seller must ensure that the goods are made available to the carrier, and they bear the risk and costs associated with getting the goods to that point. Furthermore, the seller is responsible for handling any export formalities, which can include obtaining necessary permits and dealing with logistics until the goods are handed over to the carrier. This understanding of the seller's responsibilities is essential for international shipping, as it outlines who is responsible for specific logistical steps in the process of transporting goods from one party to another. The other options do not accurately reflect the definition of FCA; for example, although it relates to the delivery of goods to a carrier, it does not specifically indicate warehouse delivery, insurance types, or customs duties.