|F.O.B. Freight Allowed
||The same as F.O.B. named inland carrier,
except the buyer pays the freight charges of the inland
carrier and the seller reduces the invoice by that
|F.O.B. Freight Prepaid
||The same as F.O.B. named inland carrier, except
the seller pays the freight charges of the inland
| F.O.B. Named Inland Carrier
||Seller must place the goods on the named carrier
at the specified inland point and obtain a bill of
lading. The buyer pays for the transportation.
| F.O.B. Named Port Of Exportation
||Seller is responsible for placing the goods at a
named point of exportation at the sellers expense.
Some European buyers use this form when they actually
mean F.O.B. vessel.
||Seller is responsible for goods and preparation
of export documentation until actually placed aboard
| Factoring Houses
||Certain companies which purchase international accounts
receivable at a discount price, usually about two
to four percent less than their face value. The fee
charged the exporter is offset by the immediate availability
of payment, plus the reduction in risk for the exporter.
||These companies negotiate directly with the growers
or producers of products to establish a fair price
for the product. In commodities such as coffee, organizations
have committed to paying a price and following procedures,
which meet needs of the small growers even when the
world market is below that price. Go to : http://www.fairtrade.org.za/ which is the umbrella organisation for fair trade in South Africa.
||Free alongside ship. A pricing term indicating that
the quoted price includes the cost of delivering the
goods alongside a designated vessel.
||A procedure adopted by the US Congress, at the request
of the President, committing Congress to vote to pass
or reject a trade agreement without amendment. Critics
argue that this procedure is undemocratic because
Congress members cannot amend or reject objectionable
clauses before agreements are passed. Fast Track was
first introduced in the Trade Act of 1974. See Trade
||"Free carrier" to named place. Replaces
the former term "FOB named inland port" to
designate the seller's responsibility for the cost
of loading goods at the named shipping point. May
be used for multimodal transport, container stations,
and any mode of transport, including air.
||Foreign Credit Insurance Association.
||Foreign Direct Investment is the purchase by the
investors or corporations of one country of non-financial
assets in another country. This involves a flow of
capital from one country to another to build a factory,
purchase a business or buy real estate.
|Fi Free in.
||A pricing term indicating that the charterer of
a vessel is responsible for the cost of loading and
unloading goods from the vessel.
| Financed Bills
||Bills sent on collection in which the remitting
branch has a financial interest.
|First In-First Out (Fifo)
||An accounting method based on an assumption regarding
the flow of goods that older stock is disposed of
first, in accordance with good merchandising policy.
| Floating Policy
||See Open policy.
|Fo - Free out.
||A pricing term indicating that the charterer of
a vessel is responsible for the cost of loading goods
from the vessel.
|"Free on board" at named port of export.
A pricing term indicating that the quoted price covers
all expenses up to and including delivery of goods
upon an overseas vessel provided by or for the buyer.
| Force Majeure
||The title of a standard clause in marine contracts
exempting the parties for nonfulfillment of their
obligations as a result of conditions beyond their
control, such as earthquakes, floods, or war.
| Foreign Bill Purchased (Fbp)
||A bill remitted to a correspondent bank in which
the remitting branch is financing the exporter - see
Financing Export Collections.
||The currency or credit instruments of a foreign
country. Also, transactions involving purchase or
sale of currencies.
| Foreign First (Fofi)
|| An accounting method based on an assumption regarding
the flow of goods that foreign status merchandise
is disposed of first.
| Foreign Freight Forwarder
||A corporation carrying on the business of forwarding
who is not a shipper or consignee. The foreign freight
forwarder receives compensation from the shipper for
preparing documents and arranging various transactions
related to the international distribution of goods.
Also a brokerage fee may be paid to the forwarder
from steamship lines if the forwarder performs at
least two of the following services: (1) coordination
of the movement of the cargo to shipside; (2) preparation
and processing of the Ocean Bill of Lading; (3) preparation
and processing of dock receipts or delivery orders;
(4) preparation and processing of consular documents
or export declarations; and (5) payment of the ocean
freight charges on shipments.
Foreign Sales Agent
|An individual or firm that serves as the foreign
representative of a domestic supplier and seeks sales
abroad for the supplier.
| Foreign Trade Zone
||See Free-trade zone.
| Foreign Trade Zone Entry
||A form declaring goods which are brought duty-free
into a Foreign Trade Zone for further processing or
storage and subsequent exportation and/or consumption.
||Forfaiting, similar to factoring, is an arrangement
under which exporters actually forfeit their rights
to future payment in return for immediate cash. The
arrangement is commonly used for sales of capital
equipment with terms of one-to-five years.
||An individual or firm serving as the foreign representative
of U.S. suppliers, locating buyers for them in the
|Foreign-Trade Zones Board
||The Board which is established to carry out the
provisions of the Foreign-Trade Zones Act.
|Forward Exchange Contract
||Contract between the Bank and its customer to buy/sell
a fixed amount of foreign currency at a future date
at a specified rate. This could be for a customer
to make payment under a DC or to sell the proceeds
received from an export negotiation.
| Foul Bill Of Lading
|| A receipt for goods issued by a carrier with an
indication that the goods were damaged when received.
Compare Clean bill of lading.
|FREE ALONGSIDE (F.A.S.)
||(Or Free Alongside Steamer) The seller must deliver
the goods to a pier and place them within reach of
the ships loading equipment. The buyer arranges ship
space and informs the seller when and where the goods
are to be placed.
|Free In (F.I.)
|| A pricing term indicating that the charter of a
vessel is responsible for the cost of loading and
unloading goods from the vessel.
|Free Of Capture And Seizure (F.C. & S.)
||An insurance clause providing that loss is not insured
if due to capture, seizure, confiscation, and like
actions whether legal or not, or from such acts as
piracy, civil war, rebellion and civil strife.
||An area such as a port city into which merchandise
may legally be moved without payment of duties.
||A term based on a theory in economics, but in reality
the practice is something quite different. The theory
of free trade contends that everyone in the world
will be better off if each nation eliminates tariffs
and other barriers to the flow of products across
borders. The practice of "free trade" departs
from theory by including the export of money either
for investment purposes or speculation. With firms
able to move both money and products around the world,
the benefits of lower prices and higher wages have
not been enjoyed by most people. In addition, under
recent "free trade"
agreements, the concept of barriers to trade has been
expanded to include domestic regulations, public health
and human rights measures, and environmental protection
laws which inhibit business activity.
|| A port designated by the government of a country
for duty-free entry of any nonprohibited goods. Merchandise
may be stored, displayed, used for manufacturing,
etc., within the zone and re-exported without duties
being paid. Duties are imposed on the merchandise
(or items manufactured from the merchandise) only
when the goods pass from the zone into an area of
the country subject to the customs authority.
| Freight Forwarder
|| An independent business that handles export shipments
for compensation. (A freight forwarder is among the
best sources of information and assistance on export
regulations and documentation, shipping methods, and
foreign import regulations.)
| Freight To (Named Destination)
||The seller must pay to forward the goods to the
agreed destination by road, rail or inland waterway
and is responsible for all risks of the goods until
they are delivered to the first carrier.
|| A free trade area is a term used for a group of
states that have reduced or eliminated trade barriers
between themselves, but who maintain their own individual
tariffs as to other states.
||The Free Trade Area of the Americas (FTAA) is an
ambitious trade agreement would include all 34 countries
in Central America, South America, and the Caribbean
(except Cuba). The FTAA was proposed in 1994 right
after the North American Free Trade Agreement (NAFTA)
was enacted in attempt to expand that agreement and
create the world's largest free-trade bloc.