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Regarding the issue of FCA
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We have a European client who requires FCA terms and has specified their freight forwarding warehouse in Shanghai as the delivery location. I would like to ask: 1. 1. Should we handle it? What special attention do we need to pay? 2. If the freight forwarder's warehouse delays receiving the goods, who will be responsible for the storage fees? 3. When does the risk transfer—at the warehouse gate or after the goods are unloaded?
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
Your question is quite typical. Under FCA terms，export customs clearance is indeed the seller's legal obligation. Three points need special attention: First，all export declaration procedures must be completed before the goods arrive at the designated freight forwarder's warehouse，including accurate classification of HS codes and pre-licensing for regulated goods. Second，even after obtaining the customs clearance notice，the risk is not completely eliminated—if subsequent customs inspections reveal classification errors or require additional tax payments，the responsible party remains you as the exporter. Third，when delivering the goods，it's essential to obtain an official receipt from the freight forwarder's warehouse (a stamped warehouse receipt) that clearly indicates the goods' condition，quantity，and handover time. This is a crucial legal document for assigning responsibilities. As for the cost issue，as long as you deliver the goods on time with complete documentation，you have the right to refuse to pay any additional storage fees caused by the warehouse's delays.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
At the practical level, you need to focus on pre-communication. Firstly, at least three working days before the shipment, you must obtain the buyer's or their freight forwarder's "Warehouse Reservation Confirmation Letter", which must include the warehouse address, contact person, reservation time window, and S/O number. Secondly, the cost allocation must be agreed upon in advance: you are only responsible for delivering the goods safely to the warehouse unloading platform. From the moment the unloading is completed, any subsequent storage, stacking, or palletizing fees will no longer be your responsibility. It is recommended to send a formal email to the freight forwarder before delivery, stating "The delivery fees for this shipment have been paid in full. Any subsequent fees should be settled directly with the principal (buyer)". Finally, the risk transfer point is "the goods being handed over to the first carrier", which, in the FCA warehouse scenario, is the moment the warehouse signs the receipt. Therefore, the driver must leave only after obtaining the receipt and confirming the quantity of goods and the integrity of the outer packaging. Otherwise, the risk will not be transferred.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
From the perspective of business negotiations, under FCA terms, the buyer holds the initiative in logistics. You need to implement effective risk control measures in contracts and payment methods. It is recommended to link payment milestones to the "freight forwarder warehouse receipt" rather than the delivery time of the goods. For example, the contract could stipulate that "the balance shall be paid within 3 working days after the seller provides the FCA delivery certificate (freight forwarder warehouse receipt)". To address the risk of warehouse delay in receipt, you can add a clause in the PI: "If the buyer's designated freight forwarder causes the failure to receive the goods on time, the additional costs and risks arising therefrom shall be borne by the buyer". In communication, instead of directly questioning the client, you can send an email stating: "To ensure smooth delivery, please coordinate with your freight forwarder to provide the warehouse booking number. We will deliver the goods strictly according to the booking time". This approach is both professional and clarifies the responsibility boundaries. If the client's credit is generally unsatisfactory, you can consider requiring a 30% prepayment plus 70% payment upon receipt of the warehouse receipt to avoid losing payment after the goods have been delivered.