FCR (forwarder's cargo receipt)

 Differences between FCR and carrier B/L

1. The B/L is issued by the ocean carrier. The FCR is issued by a freight
forwarder, acting as agent on behalf of a consignee. 

2. The B/L is a document of title and can be endorsed. The FCR is not. The FCR cannot be consigned “to order”.

 3.The B/L is evidence of contract of carriage with the carrier. The FCR is not.

 4. A duly endorsed B/L must be presented to the carrier at destination to obtain
release of the goods. The FCR does not have this function. 

5. Under a FCR, logistic's company is only responsible for the goods while they are in their custody. If goods are lost or damaged during transit, the client must file claim against the ocean carrier under the B/L (or SWB).

FCR – Differences between FCR and carrier SWB 

1. The SWB is issued by the ocean carrier. The FCR is issued by a freight forwarder, acting as agent on behalf of a consignee. 

2. The SWB is evidence of contract of carriage with the carrier. The FCR is not. 

3. The carrier will release the goods at destination to a person who can identify himself as a representative of the consignee stated in the SWB. The FCR does not have this function. The FCR is only used at origin and is not a release document. 

 4.Under a FCR, Logistics company is only responsible for the goods while they are in their custody. If goods are lost or damaged during transit, the client must file claim against the ocean carrier under the B/L (or SWB).  

"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 

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.