FCA on-board bill of lading option
Mechanism added to FCA in 2020 for sales under a documentary credit.
Definition
Under FCA the seller delivers before loading and so normally obtains no on-board bill of lading. Incoterms 2020 adds an option: the parties may agree that the buyer instructs its carrier to issue, to the seller, a bill of lading marked "on board", reconciling FCA with the requirements of a letter of credit (UCP 600).
Origin
Provision introduced by the FCA Explanatory Note in Incoterms 2020, International Chamber of Commerce (ICC publication No. 723E), absent from Incoterms 2010.
Example in context
Under "FCA Port of Marseille (Incoterms 2020)" with a documentary credit, the buyer instructs the shipping line to issue the seller a "shipped on board" B/L, releasing bank payment.