View Cart
Checkout Import Export Definitions
Foreign Traders Index
The foreign traders index is the U.S. and Foreign Commercial Service headquarters compilation of overseas contact file, intended for use by domestic businesses. The FTI includes background information on foreign companies, address, contact person, sales figures, size of company, and products by SIC code.
Forfaiting
Forfaiting is the selling, at a discount, of longer term accounts receivable or promissory notes of the foreign buyer. These instruments may also carry the guarantee of the foreign government. Forfaiting emerged after the Second World War to expedite finance transactions between Eastern and Western European countries. More recently, it has become popular in Asian countries and developing nations. Both U.S. and European forfaiting houses, which purchase the instruments at a discount from the exporters, are active in the U.S. market.
Forwarding Agent
The forwarding agent is the person in the United States who is authorized by the U.S. principal party in interest or, in the case of a routed transaction, the foreign principal party in interest to prepare and file the SED or its ABS electronic equivalent and/or perform the services required to facilitate the export of items from the United States. In routed export transactions, the forwarding agent and the exporter may be the same for compliance purposes under the EAR, but the forwarding agent is rarely the “exporter” in box 1 a of the SED or the exporter field of the ABS record. The forwarding agent serves a number of purposes, including arranging for transportation of the merchandise, packaging and, in some cases, is given Power of Attorney to fill out the required documentation for a particular shipment.
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.
Framework Agreement
Free Alongside Ship (F.A.S.) … (Named port of export)
The seller fulfills his obligation to deliver when the goods have been placed alongside the vessel at the named port of shipment. The seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port of departure. The seller handles the cost of unloading and wharfage. The buyer handles the cost of loading, ocean transportation, and insurance; and must bear all costs and risks of loss or damage to the goods from the moment goods are placed alongside the vessel. The buyer also must obtain the export license and pay export taxes and fees, if required.
Free Carrier (FCA) … (Named point)
The seller delivers the goods at the named point into the custody of the carrier named by the buyer. The seller will provide export license and pay export taxes and fees, if required, and will provide proof of delivery of the goods to the carrier. The buyer must nominate a carrier, contract for the carriage and pay the freight. The seller fulfills obligation by handing the goods over to the carrier named by the buyer. It replaces: (1) FOB named in land port; (2) FOB vessel for FCL and LCL shipments; (3) FOB airport; and (4) FOR/FOT. Delivery to the custody of an agent or freight forwarder named by the buyer fulfills the seller’s obligation.
Free In (F.I.)
A pricing term indicating that the charterer of a vessel is responsible for the cost of loading goods onto the vessel.
Free In and Out (F.I.O.)
A pricing term indicating that the charterer of a vessel is responsible for the cost of loading and unloading goods from the vessel.
Free on Board (F.O.B.)(Named port of shipment)
A pricing term indicating that the quoted price includes the cost of loading the goods into transport vessels at the specified place. The seller fulfills his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. The seller will provide the export license and pay export taxes and fees. They will also provide a clean on-board receipt and pay the loading costs according to the custom of the port to the extent that they are not included in the freight. The buyer has to bear all the costs and risks of loss or damage when the goods pass the ship’s rail.
FOB Airport
FOB airport is based on the same principle as the ordinary FOB term. The seller’s obligations include delivering the goods to the air carrier at the airport of departure. The risk of loss of, or damage to, the goods is transferred from the seller to the buyer when the goods have been so delivered.
Free of Particular Average (F.P.A)
The title of a clause used in marine insurance, indicating that partial loss or damage to a foreign shipment is not covered. (Note: Loss resulting from certain conditions, such as the sinking or burning of the ship, may be specifically exempted from certain conditions from the effect of the clause.) Compare W.P.A.
Free on RaiL1Free on Truck
These terms are synonymous, since the word “truck” relates to the railway wagons. The terms should only be used when the goods are to be carried by rail.
Free Out (F.O.)
A pricing term indicating that the charterer of a vessel is responsible for the cost of unloading the goods into transport vessels at the specified place.
Free Port
An area such as a port city into which merchandise may be legally moved without payment of duties.
Free Trade Agreement (FTA)
An FTA is an arrangement which establishes unimpeded exchange and flow of goods and services between trading partners regardless of national borders. An FTA does not (as opposed to a common market) address labor mobility across borders or other common policies such as taxes. Member countries of a free trade area apply their individual tariff rates to countries outside the free trade area.
Free Trade Area
A cooperative agreement by a group of nations whereby trade barriers are removed among the members, but each may maintain its own trade regime with nonmember nations. A free trade area allows member countries to maintain individually separate tariff schedules for external countries; members of a customs union employ a common external tariff.
Freight Carriage-paid to
Like C&F, “Freight Carriage/paid to …” means that the seller pays the freight for carriage of the goods to the named destination. However, the risk of loss of, or damage to the goods, as well as any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship’s rail. The term can be used for all modes of transport including multi-modal operations and the container or “roll on-roll off” traffic by trailer ferries. When the seller has to furnish a bill of lading, waybill or carrier’s receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.
Freight Carriage … and insurance paid to
This term is the same as “Freight CarriageiPaid to …” but with the addition that the seller has to procure transport insurance against the risk of loss or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.