What is FIATA FCR (Forwarder’s Certificate of Receipt) and what are the differences between a FCR and Bill of Lading?
Why exporters and importers are using a FCR certificate?
FCR certificate mainly used in international transactions where Ex Works (EXW) trade term is selected by the parties.
According to ICC’s Incoterms 2010 rules “Ex Works” means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e., works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.
Seller can prove to the buyer that he has already places the goods at the disposal of the buyer’s forwarder with the presentation of Forwarder's Certificate of Receipt. Also if the payment will be made via a letter of credit, banks would like to see the FCR document.
What are the main characteristics of a FCR certificate?
FCR document does not contain a contract of carriage. For this reason it is not accepted as a transport document.
By signing a FCR document a freight forwarder certifies to the consignor that,
a- they have assumed control of the goods as indicated on the forwarder’s certificate of receipt in apparent good order and condition at the disposal of the consignee or
b- they have assumed control of the goods as indicated on the forwarder’s certificate of receipt in apparent good order and condition with irrevocable instructions to be forwarded to the consignee.
FCR document is not negotiable. It is non-negotiable so that consignee need not to present an original copy to collect the goods from the transport company.
What are the difference between a FCR (Forwarder's Certificate of Receipt) and B/L (Bill of Lading)?
What is FCR? What does FCR stand for? What are the key characteristics of FCR? Is FCR a transport document?
The FCR is an acronym which stands for "Forwarder's Certificate of Receipt". FCR is a standard form of document which was prepared by FIATA (International Federation of Freight Forwarders Associations) for general use in international shipments. FCR is available to FIATA members only.
A freight forwarder by preparing a FCR certificate confirms to the consignor of the document that as a freight forwarder he has taken over the consignment and has assumed responsibility of the goods from thereon.
FCR is not a contract of carriage as a result it is not a transport document unlike bill of lading, multimodal bill of lading, air waybill, road transport document or rail transport document.
Bill of lading contains a contract of carriage between port of loading and port of discharge.
Bill of lading can be issued in a negotiable form as shown on the below examples:
-made out to the order of the issuing bank.
-made out to order and blank endorsed.
At least one original bill of lading must be surrendered to the carrier for delivery of the goods in case bill of lading was issued in negotiable form
Bill of lading is a transport document in regards to letter of credit rules.
Bill of lading should show port of loading, port of discharge and shipped on board date on its face.
Forwarder's Certificate of Receipt does not contain a contract of carriage.
Forwarder's Certificate of Receipt can’t be issued in negotiable form.
Consignee can clear the goods from the carrier without surrendering the original copy of Forwarder's Certificate of Receipt.
Forwarder's Certificate of Receipt is not a transport document in regards to letter of credit rules.
Forwarder's Certificate of Receipt need not to state port of loading, port of discharge and shipped on board date on its face.
Forwarder’s Certificate of Receipt is not a transport document as defined in UCP 600 articles 19‐25. This document is to be examined only to the extent expressly stated in the credit, otherwise according to UCP 600 sub‐article 14 (f).