The scenario describes the Free Carrier (FCA) Incoterm. Under FCA, the seller is responsible for delivering the goods, cleared for export, to a carrier nominated by the buyer at a specified location (e.g., the seller's premises or a transport terminal). The critical point, as stated in the question, is that the risk of loss or damage transfers from the seller to the buyer as soon as the goods are in the custody of the buyer's chosen carrier. This term offers flexibility as the named place of delivery can be the seller's own location or another point.

A. EXW – Ex Works: The seller's only obligation is to make the goods available at their own premises; the buyer arranges and pays for all transport and bears all risk from that point.

C. CPT – Carriage Paid To: The seller chooses and pays for the carrier to a named destination, which contradicts the buyer choosing the carrier as stated in the scenario.

D. CIP – Carriage and Insurance Paid to: Similar to CPT, the seller arranges and pays for the carrier and also procures insurance, which is not mentioned and contradicts the buyer's role.

1. International Chamber of Commerce (ICC). Incoterms® 2020: ICC rules for the use of domestic and international trade terms. ICC Publication No. 723E

2019. The rule for FCA (Free Carrier) states

"The seller delivers the goods to the carrier...nominated by the buyer...Risk passes from seller to buyer when the goods are delivered to the carrier nominated by the buyer" (Guidance Note

FCA

pp. 30-31).

2. Ramberg

J. ICC Guide to Incoterms® 2010. ICC Publication No. 720E

2011. (While for the 2010 version

the core principle of FCA remains consistent with the 2020 rules). The guide explains that under FCA

"the seller fulfils his obligation to deliver when he has handed over the goods

cleared for export

into the charge of the carrier named by the buyer at the named place or point" (p. 124).

3. Michigan State University

International Business Center. "Incoterms® 2020." globalEDGE. This educational resource outlines the responsibilities for each term. For FCA

it specifies that risk transfer occurs "When the goods are delivered to the buyer's nominated carrier at the named place." This confirms the buyer's role in selecting the carrier and the precise point of risk transfer.