“Free Carrier” means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller’s premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading. This term may be used irrespective of the mode of transport, including multimodel transport.
“Carrier” means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes. If the buyer nominates a person other than a carrier to receive the goods, the seller is deemed to have fulfilled his obligation to deliver the goods when they are delivered to that person.
A The seller’s obligations
A1 Provision of goods in conformity with the contract
The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A2 Licences, authorizations and formalities
The seller must obtain at his own risk and expense any export licence or other official authorization and carry out, where applicable, 10 all customs formalities necessary for the export of the goods.
A3 Contracts of carriage and insurance
(a) Contract of carriage
No obligation
However, if requested by the buyer or if it is commercial practice and the buyer does not give an instruction to the contrary in due time, the seller may contract for carriage on usual terms at the buyer’s risk and expense. In either case, the seller may decline to make the contract and, if he does, shall promptly notify the buyer accordingly.
(b) Contract of insurance
No obligation
A4 Delivery
The seller must deliver the goods to the carrier or another person nominated by the buyer, or chosen by the seller in accordance with A3 (a), at the named place on the date or within the period agreed for delivery.
Delivery is completed:
(a) If the named place is the seller’s premises, when the goods have been loaded on the means of transport provided by the carrier nominated by the buyer or another person acting on his behalf.
(b) If the named place is anywhere other than (a), when the goods are placed at the disposal of the carrier or another person nominated by the buyer, or chosen by the seller in accordance with A3 (a) on the seller’s means of transport not unloaded.
If no specific point has been agreed within the named place, and if there are several points available, the seller may select the point at the place of delivery which best suits his purpose. Failing precise instructions from the buyer, the seller may deliver the goods for carriage in such a manner as the transport mode and/or the quantity and/or nature of the goods may require.
A5 Transfer of risks
The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A4.
A6 Division of costs
The seller must, subject to the provisions of B6, pay
- all costs relating to the goods until such time as they have been delivered in accordance with A4;
- where applicable,15 the costs of customs formalities as well as all duties, taxes, and other charges payable upon export.
A7 Notice to the buyer
The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4. Should the carrier fail to take delivery in accordance with A4 at the time agreed, the seller must notify the buyer accordingly.
A8 Proof of delivery, transport document or equivalent electronic message
The seller must provide the buyer at the seller’s expense with the usual proof of delivery of the goods in accordance with A4. Unless the document referred to in the preceding paragraph is the transport document, the seller must render the buyer at the latter’s request, risk and expense, every assistance in obtaining a transport document for the contract of carriage (for example a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, an air waybill, a railway consignment note, a road
consignment note, or a multimodal transport document). When the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange (EDI) message.
A9 Checking—packaging—marking
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4. The seller must provide at his own expense packaging (unless it is usual for the particular trade to send the goods of the contract description unpacked) which is required for the transport of the goods, to the extent that the circumstances relating to the transport (for example modalities, destination) are made known to the seller
before the contract of sale is concluded. Packaging is to be marked appropriately.
A10 Other obligations
The seller must render the buyer at the latter’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of delivery and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country. The seller must provide the buyer, upon request, with the necessary information for procuring insurance.
B The buyer’s obligations
B1 Payment of the price
The buyer must pay the price as provided in the contract of sale.
B2 Licences, authorizations and formalities
The buyer must obtain at his own risk and expense any import licence or other official authorization and carry out, where applicable, 11 all customs formalities for the import of the goods and for their transit through any country.
B3 Contracts of carriage and insurance
(a) Contract of carriage
The buyer must contract at his own expense for the carriage of the goods from the named place, except when the contract of carriage is made by the seller as provided for in A3 (a).
(b) Contract of insurance
No obligation
B4 Taking delivery
The buyer must take delivery of the goods when they have been delivered in accordance with A4.
B5 Transfer of risks
The buyer must bear all risks of loss of or damage to the goods
- from the time they have been delivered in accordance with A4;
- from the agreed date or the expiry date of any agreed period for delivery which arise either because he fails to nominate the carrier or another person in accordance with A4, or because the carrier or the party nominated by the buyer fails to take the goods into his charge at the agreed time, or because the buyer fails to give appropriate notice in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
B6 Division of costs
The buyer must pay
- all costs relating to the goods from the time they have been delivered in accordance with A4; and
- any additional costs incurred, either because he fails to nominate the carrier or another person in accordance with A4 or because the party nominated by the buyer fails to take the goods into his charge at the agreed time, or because he has failed to give appropriate notice in accordance with B7, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods;
- where applicable,16 all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and for their transit through any country.
B7 Notice to the seller
The buyer must give the seller sufficient notice of the name of the party designated in A4 and, where necessary, specify the mode of transport, as well as the date or period for delivering the goods to him and, as the case may be, the point within the place where the goods should be delivered to that party.
B8 Proof of delivery, transport document or equivalent electronic message
The buyer must accept the proof of delivery in accordance with A8.
B9 Inspection of goods
The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export.
B10 Other obligations
The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering his assistance in accordance therewith and in contracting for carriage in accordance with A3 (a).
The buyer must give the seller appropriate instructions whenever
the seller’s assistance in contracting for carriage is required in accordance with A3 (a).