Incoterms 2020
EXW vs FCA
Compare Ex Works and Free Carrier side by side: who pays freight, where risk transfers, and who clears customs.
| Field | EXW | FCA |
|---|---|---|
| Applies to | Any mode, including multimodal | Any mode, including multimodal |
| Risk transfers to buyer | When the goods are placed at the buyer's disposal at the seller's premises, not loaded onto the collecting vehicle. | When the goods are handed to the carrier nominated by the buyer, or loaded onto the buyer's vehicle if delivery is at the seller's premises. |
| Main carriage paid by | Buyer | Buyer |
| Insurance | No party is obliged to insure. The buyer bears risk from the seller's premises and should arrange cover. | No party is obliged to insure. The buyer should arrange cover for the main carriage. |
| Export clearance | Buyer | Seller |
| Import clearance and duties | Buyer | Buyer |
| Seller handles | Make the goods available at their own premises. This is the seller’s minimum obligation. | Deliver the goods, cleared for export, to the buyer’s carrier at the named place. |
| Buyer handles | Everything else: loading, export clearance, main carriage, insurance, import clearance, and delivery. | Main carriage, insurance, import clearance, and onward delivery. |
| Best for | Buyers with their own logistics who want maximum control. Note that putting export clearance on the buyer is awkward, so FCA is often preferred. | Buyers who arrange their own freight forwarder. The modern replacement for FOB when goods are containerized. |
Fields that differ are highlighted in teal. General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
EXW vs FCA questions
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