Posted in Finance, Accounting and Economics Terms, Total Reads: 402
Definition: Free Carrier
Free Carrier is an agreement used in international commerce according to which the obligation of seller gets fulfilled once the specified good has been delivered to the named airport, terminal or other places from which it will be transported though carrier. Thus the cost, risk and responsibility of the good shifts from seller to the buyer once the good has been delivered to the specified carrier at the designated place. The buyer decides the place to which seller has to deliver the good.
Usually contracts involving international trade often contain many abbreviated trade terms that describes the time of delivery, place of delivery, mode of payment, etc. The most commonly used trade terms are Incoterms, which are published in International Chamber of Commerce (ICC). Such terms are legal terms and hence should be used in any contracts only after consultation with International trade lawyers.