The difference between fca and fob

The difference between FCA and FOB lies in the different modes of transportation and the different boundaries of risk division.

1, the applicable modes of transportation are different.

The FOB term is only applicable to the traditional sea or inland waterway transportation, and the seller must submit the corresponding water transport documents, such as the sea bill of lading with the nature of title certificate. The term FCA is formulated to adapt to the development of modern transportation modes (container transportation, ro-ro transportation and multimodal transportation), which can be applied to any transportation mode including international multi-step transportation and has wide applicability. The transport documents submitted by the seller are also different according to the different modes of transport, such as ocean bill of lading, air waybill, road waybill, railway waybill, multi-step transport documents, etc.

In practice, the FCA term is usually called "FOB for multimodal transport", while the FOB term only applicable to maritime transactions is called "FOB at sea". However, if the FCA term is applicable to the transaction of railway or road transport mode, it can be called "FOB"; On the road "; When applied to air transport transactions, it can be called "air FOB".

2. The boundaries of risk division are different.

Under FOB conditions, after the seller loads the goods on the designated vessel at the designated port of shipment, the risk will be transferred to the buyer, who will bear all the risks of damage or loss from the time the goods are loaded at the port of shipment.

According to the FCA clause, after the seller delivers the goods to the designated carrier, the risk is transferred to the buyer, and the buyer bears all the risks of damage or loss of the goods from the time the carrier receives the goods. If the seller must deliver the goods to the carrier or the distribution point operator on behalf of the carrier before the ship arrives at the loading port, using FCA clause can transfer the risk to the buyer in advance compared with FOB clause.

Mutual obligations of the Fair Competition Law

I. Obligations of the Seller

1, provide goods that meet the requirements of the contract.

2. The seller must provide the goods that meet the requirements of the sales contract, commercial invoices or electronic messages with the same effect, and any other documents that may be required by the contract to prove that the goods meet the requirements of the contract.

3. The seller must bear the risks and expenses until the goods are delivered to the carrier for acceptance, any export license or other official permission is obtained, and all customs formalities required for the export of the goods are handled when necessary.

4. Deliver the goods to the carrier or other person designated by the buyer for safekeeping at the designated place or other receiving place, within the agreed delivery date or time limit, in the agreed way or in the customary way at the agreed place.

5. Bear all risks of loss or damage to the goods until the goods are delivered.

Second, the buyer's obligations

1. Responsible for arranging transportation, and fully inform the seller of the carrier's name, mode of transportation, delivery time and place.

The seller shall bear all risks of loss or damage of the goods from the time of delivery.

3. Receive the delivery voucher or electronic information with the same effect according to the provisions of the contract, and pay the payment according to the provisions of the contract.

If the buyer wishes, he can also obtain any import license or other official permission at his own risk and expense, and go through all customs formalities for the import of goods and transit from other countries when necessary.