- Factoring - Factoring is the discounting of a foreign
account receivable that does not involve a draft. The exporter
transfers title to its foreign accounts receivable to a factoring
house for cash at a discount from the face value. Factoring
is often done without recourse to the exporter. Export factoring
allows an exporter to ship on "open account," by which goods
are shipped without guarantee of payment (that is, a letter
of credit). The factor assumes financial ability of the customer
to pay and handles collections on the receivables. See: Factoring
House. Forfaiting.
- Factoring Houses - Certain companies which purchase
export receivables (e.g., the invoices to foreign buyers)
at a discounted price, usually about two to four percent less
than their face value.
- Fair Value - The reference against which U.S. purchase
prices of imported merchandise are compared during an antidumping
investigation. Generally expressed as the weighted average
of the exporter's domestic market prices, or prices of exports
to third countries during the period of investigation. In
some cases fair value is the constructed value. Constructed
value is used if there are no, or virtually no, home market
or third country sales or if the number of such sales made
at prices below the cost of production is so great that remaining
sales above the cost of production provide an inadequate basis
for comparison. See: Tariff Act of 1930.
- FAM Tour - Familiarization tour for travel agents
or journalists planned and executed by a destination or region,
usually in cooperation with an international airline.
- Fast Track - Fast track procedures for approval of
trade agreements were included by Congress in trade legislation
in 1974, in 1979, and again in the 1988 Trade Act. Fast track
provides two guarantees essential to the successful negotiation
of trade agreements: (1) a vote on implementing legislation
within a fixed period of time, and (2) a vote, up or down,
with no amendments to that legislation. Provisions in the
Omnibus Trade and Competitiveness Act of 1988 include that
the foreign country request negotiation of an FTA and that
the President give the Congress a 60-legislative-day notice
of intent to negotiate an FTA. During the 60-legislative-day
period, either committee can disapprove fast track authority
by a majority vote. Disapproval would likely end the possibility
of FTA negotiations. The 60-legislative-days can translate
into five to ten months of calendar time, depending on the
Congressional schedule. Formal negotiations would begin following
this 60-day Congressional consideration period.
- Feasibility Studies - See: Trade and Development
Agency.
- Federacion Mundial de Instituciones Financieras de Desarollo
- See: World Federation of Development Financing Institutions.
- Federal Grain Inspection Service - FGIS certifies
that grain produced in the United States meets the official
United States Standards for Grain. As part of its responsibilities,
FGIS works with international traders. Before any grain can
be exported from the United States, it must first be certified
by FGIS as having met a specific standard. FGIS staff explain
the national inspection system, U.S. grain standards, and
commodity inspection programs; conduct briefings and tours;
assess foreign inspection and weighing techniques; and respond
to inquiries about quality and quantity of U.S. grain exports.
FGIS agencies in eight states are delegated authority to perform
official export services at ports.
- Federal Maritime Commission - The FMC is an independent
agencys which regulates oceanborne transportation in the foreign
commerce and in the domestic offshore trade of the United
States.
- Final Determination - The International Trade Administration
makes a final determination after the investigation of sales
at "less than fair value" and the receipt of comments from
interested parties. This determination usually is made within
75 days after the date a preliminary determination is made.
However, if the preliminary determination was affirmative,
the exporters who account for a significant proportion of
the merchandise under consideration may request, in writing,
a postponement of this determination. If the preliminary determination
was negative, the petitioner may likewise request a postponement.
In neither case can this postponement be more than 135 days
after the date of the preliminary determination. If the final
determination is affirmative and follows a negative preliminary
determination, the matter is referred to the International
Trade Commission for a determination of the injury caused
or threatened by the sales at less than fair value. (Had the
preliminary determination been affirmative, the ITC would
have begun its investigation at that time.) Not later than
45 days after the date the International Trade Administration
makes an affirmative final determination, in a case where
the preliminary determination also was affirmative, the International
Trade Commission must render its decision on injury. Where
the preliminary determination was negative, the ITC must render
a decision not later than 75 days after the affirmative final
determination. A negative final determination by the Assistant
Secretary for Import Administration terminates an antidumping
investigation. See: Tariff Act of 1930.
- Fines, Penalties, and Forfeitures System - The Fines,
Penalties, and Forfeitures System, FPFS, a part of the US
Customs' Automated Commercial System, is used to assess, control,
and process penalties resulting from violations of law or
Customs regulations. FPFS provides retrieval of case information
for monitoring case status.
- Five-K Countries 5(k) Countries - Those countries
as defined under Section 5(k) of the Export Administration
Act. Such countries are eligible for some or all of the same
treatment as CoCom countries in relation to export control
requirements if those countries maintain comparable export
control programs. See: Coordinating Committee on Multilateral
Export Controls.
- Flag of Convenience - A ship registered under the
flag of a nation which offers conveniences in the areas of
taxes, crew, and safety requirements.
- Fondo Financiero Para el Desarrollo de la Cuenca del
Plata - FONPLATA (English: Plata Basin Financial Development
Fund) finances prefeasibility and feasiblity studies, engineering
designs, and projects in its member countries (Argentina,
Bolivia, Brazil, Paraguay, and Uruguay). The Fund encourages
cofinancing with international development institutions to
increase project impact. Loan financing is available for infrastructure,
industrial, livestock education, and health projects. FONPLATA
was established in 1976; headquarters are in Sucre, Bolivia.
The Fund is an outgrowth of the April 1969 Plata Basin Treaty
(entered into force, August 1970) which sought to coordinate
development of the region, including navigation, control of
acquatic resources, and use of natural resources.
- Fondo para el Fomento de las Exportaciones de Productos
Manufacturados - FOMEX (the Export Fund), is a trust established
by the Mexican government to increase employment and to increase
the balance of payments and the international reserve levels.
FOMEX uses loans and loan guarantees to help exporters of
manufactured goods and services and importers who wish to
substitute imports with nationally produced goods.
- Food and Agricultural Organization - The FAO was
established in 1945, as a specialized agency of the United
Nations to combat hunger and malnutrition. The FAO serves
as a coordinating body between government representatives,
scientific groups, and non-governmental organizations to carry
out development programs relating to food and agriculture.
Headquarters are in Rome, Italy.
- Food For Development - See: Food for Peace.
- Food for Peace - The "Food for Peace" program (also
known as "P.L. 480), originally established by the 1954 Agricultural
Trade and Development Act, is the primary means by which the
U.S. provides foreign food assistance. The three primary objectives
of the program are to: (a) expand U.S. agricultural exports,
(b) provide humanitarian relief, and (c) aid the economic
development of developing countries. Commodities are transferred
in two ways: - By government-to-government long-term concessional
financing or for local currencies in which priority is given
to developing countries which demonstrate the greatest need
for food, are undertaking measures to improve their food security
and agricultural development, and are potential commercial
markets for U.S. agricultural commodities -- Title I, administered
by the Department of Agriculture; and - Donations or grants,
including: + Donations of food commodities for distribution
in meeting either emergency conditions or international cooperative
non-emergency assistance -- Title II, administered by AID;
and + Providing food assistance on a grant basis to least
developed countries through government-to-government agreements.
Proceeds derived from sales on the local market may be used
to support a variety of economic development and related activities
in the recipient countries -- Title III, administered by AID.
This assistance is sometimes known as "Food For Development."
See: Food for Progress Section 416
- Food For Progress - The "Food for Progress" program,
established by the 1985 Farm Bill, is carried out by the Department
of Agriculture, using the authority of either Public Law 480
or Section 416 of the Agricultural Act of 1949. The program
donates surplus government-owned agricultural commodities
or Title I (of P.L. 480) funds to needy countries for development
and agricultural reform purposes. Food for Progress operates
in a less restrictive manner than either P.L. 480 or Section
416. See: Food for Peace Section 416.
- Force Majeure - The title of a standard clause in
marine contract exempting the parties for non-fulfillment
of their obligations as a result of conditions beyond their
control, such as earthquakes, floods, or war.
- Foreign Access Zone - FAZ is a term adopted by Japan
for its form of free trade zone. FAZs are the outgrowth of
Japan's effort to improve its trade balance and to stimulate
regional economic areas. FAZs are intended to be established
around airports and seaports, with facilities (warehouses,
cargo-sorting, distribution, import processing, wholesale,
design-in centers, exhibition halls) on an international scale.
The FAZ concept -- which emphasizes imports rather than the
processing and job creation -- extends from the July 1992
Law on Extraordinary Measures for the Promotion of Imports
and the Facilitation of Foreign Direct Investment in Japan.
Passage of the law is linked to the Structural Impediments
Initiative (SII). See: Free Trade Zones Structural Impediments
Initiative.
- Foreign Affairs Administrative Support - The FAAS
program is the mechanism used by the Department of State (DOS)
to define the additional costs it incurs for providing services
necessary to support the overseas operations of agencies external
to DOS. Under FAAS, DOS funds core costs required for its
own programs while the supported agencies fund incremental
costs of their service requirements. These latter costs are
shared through the application of workload factors which measure
agency participation in the services.
- Foreign Affiliate - See: Affiliate.
- Foreign Affiliate of a Foreign Parent - A foreign
affiliate of a foreign parent is, with reference to a given
U.S. affiliate, any member of the affiliated foreign group
owning the U.S. affiliate that is not a foreign parent of
the U.S. affiliate.
- Foreign Agricultural Service - The FAS, an agency
of the U.S. Department of Agriculture, collects foreign market
information regarding agricultural production and trade, develops
foreign markets for U.S. agricultural products, and represents
U.S. agricultural interests overseas and in multilateral fora.
FAS maintains over 60 counselor and attache posts, located
in U.S. embassies and consulates, and about fifteen Agricultural
Trade Offices (ATOs) which provide market development and
trade promotion services in overseas locations. FAS also administers
USDA's export credit and concessional sales programs. FAS
headquarters are located in Washington, D.C.
- Foreign Assets Control - The US Treasury Department's
Office of Foreign Assets Control, OFAC, administers sanctions
programs involving specific countries and restricts the involvement
of U.S. persons in third country strategic exports.
- Foreign Assistance Act of 1991 - This US Act replaced
the Support for East European Democracy (SEED) Act. The Foreign
Assistance Act allows support to 26 countries, including all
East European nations and most of the Soviet republics, but
not to the Soviet Union itself.
- Foreign Availability - The US Bureau of Export Administration
conducts reviews to determine the foreign availability of
selected commodities or technology subject to export control.
The reviews use four criteria to determine foreign availability:
comparable quality, availability-in-fact, foreign source,
and adequacy of available quantities that would render continuation
of the U.S. control ineffective in meeting its intended purpose.
A positive determination of foreign availability means that
a non-U.S. origin item of comparable quality may be obtained
by one or more proscribed countries in quantities sufficient
to satisfy their needs so that U.S. exports of such item would
not make a significant contribution to the military potential
of such countries. A positive determination may result in
the decontrol of a U.S. product that has been under export
control, or the approval of an export license. However, the
control may be maintained if the President invokes the national
security override provision of the Act. Beginning with the
1977 amendments to the Export Administration Act, the Congress
directed that products with foreign availability be identified
and decontrolled unless essential to national security. In
January 1983, a program to assess the foreign availability
of specific products was established within the Office of
Export Administration, now the Bureau of Export Administration,
or BXA. Further, 1985 amendments to the Act directed that
an Office of Foreign Availability be created.
- Foreign Bank Supervision Enhancement Act - The FBSEA,
passed in 1991, increased the US Federal Reserve's supervisory
powers over foreign banks by: (a) requiring Federal Reserve
review before a foreign bank enters or expands in the United
States; (b) tightening the standards for entry and expansion
that must be considered by the Federal Reserve; (c) requiring
Federal Reserve Board approval of U.S. representative offices
of foreign banks; and (d) requiring that each U.S. office
of a foreign bank be examined at least once a year by the
Federal Reserve. See: International Banking Act.
- Foreign Broadcast Information Service(U.S) - FBIS
and the Joint Publication Research Service (JPRS) publish
political, military, economic, environmental, and sociological
new, commentary, and other information, and scientific and
technical data reports. All FBIS and JPRS information is obtained
from foreign radio and television broadcasts, news agency
transmissions, newspapers, books, and periodicals.
- Foreign Buyer Program(U.S) - The Foreign Buyer Program,
FBP, is a joint industry-International Trade Administration
program to assist exporters in meeting qualified foreign purchasers
for their product or service at trade shows held in the United
States. ITA selects leading U.S. trade shows in industries
with high export potential. Each show selected for the FBP
receives promotion through overseas mailings, U.S. embassy
and regional commercial newsletters, and other promotional
techniques. ITA trade specialists counsel participating U.S.
exhibitors.
- Foreign Claims Settlement Commission(U.S.) - The
FCSC is authorized to determine claims of United States nationals
for loss of property in specific foreign countries. These
losses have occurred either as a result of nationalization
of property by foreign governments or from damage and loss
of property as a result of military operations in specific
conflicts. The Commission is an independent quasi-judicial
agency within the Justice Department.
- Foreign Corrupt Practices Act(U.S.) - The FCPA prohibits
U.S. individuals, companies and direct foreign subsidiaries
of U.S. companies from offering, promising, or paying anything
of value to any foreign government official in order to obtain
or retain business.
- Foreign Direct Investment in the United States -
Foreign direct investment in the United States is the ownership
or control, directly or indirectly, by a single foreign person
(an individual, or related group of individuals, company,
or government) of 10 percent or more of the voting securities
of an incorporated U.S. business enterprise or an equivalent
interest in an unincorporated U.S. business enterprise, including
real property. Such a business is referred to as a U.S. affiliate
of a foreign direct investor. See: Committee on Foreign Investment
in the United States Foreign Person Portfolio Investment.
- Foreign Disclosure and Technical Information System(U.S.)
- FORDTIS is a classified information system that contains
an automated database of munition and dual-use export licenses.
The system is maintained by the Defense Department's Defense
Technology Security Administration. See: Defense Technology
Security Administration Export Control Automated Support System.
- Foreign Economic Trends - FETs are reports prepared
by U.S. embassies abroad to describe foreign country economic
and commercial trends and trade and investment climates. The
reports describe current economic conditions; provide updates
on the principal factors influencing developments and the
possible impacts on American exports; review newly announced
foreign government policies as well as consumption, investment,
and foreign debt trends.
- Foreign Exchange Option - A foreign exchange option
is an arrangement in which a purchaser and a seller of foreign
currencies agree on a specific rate of exchange at a future
date. The purchaser may choose to exercise or pass up the
option -- thus setting a limit on unfavorable exchange rates.
The seller is given a fee for tendering the option. Purchasers
may exercise the option at any time -- in the European option,
currency exchange is made on the originally established date;
in the American option, exchange is made within a couple of
days of the purchaser exercising the option. See: Forward
Exchange Rate.
- Foreign Exports - Exports of foreign merchandise
(re-exports), consist of commodities of foreign origin which
have entered the Australia for consumption or into Customs
bonded warehouses, and which, at the time of exportation,
are in substantially the same condition as when imported.
- Foreign Flag - A reference to a carrier not registered
in the United States that flies the American flag. The term
applies to air and sea transportation.
- Foreign Independent Tour - A foreign independent
tour, FIT, is a prepaid travel arrangement, tailored to meet
a traveler's specific wishes.
- Foreign Investment Advisory Service - FIAS was established
in 1986 as a joint facility of the International Finance Corporation
and the Multilateral Investment Guarantee Agency to help developing
countries increase the inflow of foreign investment. The Service
provides advice at the request of member governments on formulating
a general framework of legal, accounting, and regulatory policies
and institutions and procedures to attract and assess investment
interest.
- Foreign Market Development Program(U.S.) - FMD (also
known as the Cooperator Program) is one of several Department
of Agriculture (USDA) programs designed to encourage development,
maintenance and expansion of commercial export markets for
U.S. agricultural commodities and products. Under FMD, USDA
considers proposals with preference given to activities promising
early results and lasting benefits in commercial export markets.
Funds may be used for trade servicing, consumer promotion,
market research, and to provide technical assistance to actual
or potential foreign purchasers. While agreements under the
Cooperator Program may extend from one to five years, types
of activities and amounts of funds are annually negotiated
between the Foreign Agricultural Service (FAS) and participants
(cooperators) and authorized in annual marketing plans. The
marketing plans must set forth the objectives and describe
the specific project in detail. The amount of funding provided
by FAS varies, dependent upon circumstances and whether the
activities are characterized as generic or market promotion.
- Foreign Market Research - See: Industry Subsector
Analysis.
- Foreign Market Value - The price at which merchandise
is sold, or offered for sale, in the principal markets of
the country from which it is exported. If information on foreign
home market sales is not useful, the foreign market value
is based on prices of exports to third countries or constructed
value. Adjustments for quantities sold, circumstances of sales,
and differences in the merchandise can be made to those prices
to ensure a proper comparison with the prices of goods exported
to the United States. See: Tariff Act of 1930.
- Foreign Military Sales - See: Conventional Arms Transfer.
- Foreign-Owned Affiliate in the U. S. - A business
in the United States in which there is sufficient foreign
investment to be classified as direct foreign investment.
To determine fully the foreign owners of a U.S. affiliate,
three entities must be identified: the foreign parent, the
ultimate beneficial owner, and the foreign parent group. All
these entities are "persons" in the broad sense: thus, they
may be individuals; business enterprises; governments; religious,
charitable, and other nonprofit organizations; estates and
trusts; and associated groups. A U.S. affiliate may have an
ultimate beneficial owner (UBO) that is not the immediate
foreign parent; moreover, the affiliate may have several ownership
chains above it, if it is owned at least 10 percent by more
than one foreign person. In such cases, the affiliate may
have more than one foreign parent, UBO, and/or foreign parent
group. See: Foreign Parent Foreign Parent Group.
- Foreign Parent - The first foreign person or entity
outside the United States in an affiliate's ownership chain
that has direct investment in the affiliate. The foreign parent
consists only of the first person or entity outside the United
States in the affiliate's ownership chain; all other affiliated
foreign persons are excluded.
- Foreign Parent Group - A foreign parent group, FPG,
consists of: (1) the foreign parent, (2) any foreign person
or entity, proceeding up the foreign parent's ownership chain,
that owns more than 50 percent of the party below it, up to
and including the ultimate beneficial owner (UBO), and (3)
any foreign person or entity, proceeding down the ownership
chain(s) of each of these members, that is owned more than
50 percent by the party above it. A particular U.S. affiliate
may have several ownership chains above it, if it is owned
at least 10 percent by more than one foreign party. In such
cases, the affiliate may have more than one foreign parent,
UBO, and/or foreign parent group.
- Foreign Policy Controls - Foreign policy controls
are distinct from national security controls (CoCom or other
international agreements) and are imposed to further U.S.
foreign policy. The controls are typically imposed in response
to developments in a country or countries -- such as considerations
regarding terrorism and human rights -- or to developments
involving a type or types of commodities and their related
technical data. Foreign policy controls expire annually, unless
extended.
- 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 Service - The Foreign Service supports the
President and the Secretary of State in pursuing America's
foreign policy objectives. Foreign service functions include:
representing U.S. interests; operating U.S. overseas missions;
assisting Americans abroad; public diplomacy and reporting;
communicating and negotiating political, economic, consular,
administrative, cultural, and commercial affairs. The Foreign
Service comprises officers from the Departments of State,
Commerce, and Agriculture and the United States Information
Service. See: Commercial Officers Economic Officers.
- Foreign Service Institute - FSI was founded in 1946
to train U.S. foreign and civil service officials. Training
courses cover administrative, consular, economic, commercial,
and political work, foreign languages, and diplomatic life
overseas.
- Foreign Service National - Host-country national
employed by a U.S. mission overseas.
- Foreign Trade Division - FTD is the division in the
Commerce Department's Census Bureau which compiles and disseminates
official U.S. import and export statistics. The division also
maintains international commodity classification systems and
conducts methods research, including international comparability
of trade statistics.
- Foreign Trade Zones - FTZs are the U.S. form of free
trade zones. These zones are restricted-access sites in or
near ports of entry, that operate under public utility principles
to create and maintain employment by encouraging operations
in the U.S. which might otherwise have been carried on abroad.
Goods brought into a zone for a bona fide Customs reason are
exempt from state and local ad valorem tax. The zones are
licensed by the Commerce Department's Foreign-Trade Zones
Board and operate under the supervision of the Customs Service.
Quota restrictions do not normally apply to foreign goods
stored in zones, but the Board can limit or deny zone use
in specific cases on public interest grounds. Domestic goods
moved into a zone for export may be considered exported upon
entering the zone for purposes of excise tax rebates and drawback.
A foreign trade "subzone" is a non-contiguous zone site located
at a manufacturing plant. See: Free Trade Zones.
- Foreign Traders Index - The foreign traders index
is the U.S. and Foreign Commercial Service headquarters compilation
of overseas contact files, 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.
- Foreign Trade Statistical Reporting - See: Shipper's
Export Declaration.
- Forfaiting - Forfaiting is a form of supplier credit
in which an exporter surrenders possession of export receivables,
which are usually guaranteed by a bank in the importer's country,
by selling them at a discount to a "forfaiter" in exchange
for cash. These instruments may also carry the guarantee of
the foreign government. In a typical forfaiting transaction,
an exporter approaches a forfaiter before completing a transaction's
structure. Once the forfaiter commits to the deal and sets
the discount rate, the exporter can incorporate the discount
into the selling price. Forfaiters usually work with bills
of exchange or promissory notes, which are unconditional and
easily transferable debt instruments that can be sold on the
secondary market. Three primary differences between export
factoring and forfaiting are:- Factors usually want access
to a large percentage of an exporter's business, while most
forfaiters will work on a one-shot basis; -Forfaiters generally
work with medium and long-term receivables (180 days to seven
years), while factors work with short-term receivables (up
to 180 days). Payment terms usually reflect the type of product
involved: forfaiters usually work with capital goods, commodities,
and large projects; factors work mostly with consumer goods.
- Most factors do not have strong capabilities in developing
regions of the world where legal and financial frameworks
are inadequate and credit informaiotn is not readily available
through affiliate factors. However, since forfaiters usually
require a bank guarantee, most are willing to work with receivables
from these countries. See: Factoring.
- Former Soviet Union - The FSU is a collective reference
to republics comprising the former Soviet Union. The term
has been used both including and excluding the Baltic republics
(Estonia, Latvia, and Lithuania); the term includes the other
twelve republics: Russia, Ukraine, Belarus, Moldova, Armenia,
Azerbaijan, Uzbekistan, Turkmenistan, Tajikistan, Kazakhstan,
Kirgizstan, and Georgia.
- Forty-Foot Equivalent Unit - See: Twenty-Foot Equivalent
Unit.
- Forward Exchange Rate - A forward exchange rate is
the price set between two parties for delivery of a foreign
currency on an agreed future date. If that date will occur
within a week, the agreement is called a spot transaction;
if the date is more than a week in the future, the arrangement
is called a forward exchange transaction. See: Foreign Exchange
Option.
- Foul Bill of Lading - A receipt for goods issued
by a carrier with an indication that the goods were damaged
when received.
- Framework Agreement- Tokyo Round: - The Tokyo Round
called for consideration to be given "to improvements in the
international framework for the conduct of world trade." Four
separate agreements make up what is known as the "framework
agreement." They concern: (1) differential and more favorable
treatment for, and reciprocity and fuller participation by,
developing countries in the international framework for trade;
(2) trade measures taken for balance of payments purposes;
(3) safeguard actions for development purposes; and (4) an
understanding on notification, consultation, dispute settlement,
and surveillance in the GATT.- Enterprise for the Americas
Initiative: Under the umbrella of the Enterprise for the Americas
Initiative the United States and interested Western hemisphere
countries are negotiating bilateral framework agreements which
establish agreed upon stages for eliminating counter-productive
barriers to trade and investment. They also provide a forum
for bilateral dispute settlement. 'Generally, the bilateral
framework agreements contain similar objectives. They are
based on a statement of agreed principles regarding the benefits
of open trade and investment, increased importance of services
to economies, the need for adequate intellectual property
rights protection, the importance of observing and promoting
internationally-recognized worker rights, and the desirability
of resolving trade and investment problems expeditiously.
The parties establish a Council on Trade and Investment to
monitor trade and investment relations, hold consultations
on specific trade and investment matters of interest to both
sides, and work toward removing impediments to trade and investment
flows. Framework agreements do not bind signatories to implement
specific trade liberalization measures.
- Franc Zone - The Franc Zone (French: Zone Franc,
ZF) is a monetary union among countries whose currencies are
linked to the French franc at a fixed rate of exchange: Benin,
Burkina, the Cameroon, Central African Republic, Chad, Comoros,
Congo, Equatorial Guinea, France, Gabon, Cote d'Ivoire, Mali,
Niger, Senegal, and Togo. These countries have agreed to hold
their reserves primarily in French francs and to transact
exchanges on the Paris market. The zone was established in
May 1951 under the auspices of a French government agency:
Comite Monetaire de ZF.
- Free Alongside Ship - Free Alongside Ship, FAS, at
a named port of export. Under FAS, 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; loading, ocean transportation,
and insurance are left to the buyer. FAS is also a method
of export and import valuation.
- Free Carrier ... (named point) - Free Carrier, FCA,
to a named place. This term replaces the former "FOB named
inland port" to designate the seller's responsibility for
the cost of loading goods at the named shipping point. It
may be used for multimodal transport, container stations,
and any mode of transport, including air.
- Freedom Support Act - The FSA, signed into law in
October 1992, authorizes a range of programs to support free
market and democratic reforms in Russia, Ukraine, Armenia,
and other states of the former Soviet Union.
- Free In - 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 - 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 - Free On Board (FOB) at a named port
of export. The seller quotes the buyer a price that covers
all costs up to and including delivery of goods aboard a vessel
at a port. FOB is also a method of export valuation.
- 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., a type of marine
insurance, is the minimum coverage in use and covers total
and partial losses if the ship carrying an exporter's goods
is involved in a collision or fire, or is stranded or sunk.
See: Marine Cargo Insurance.
- Free on Rail/Free on Truck - These terms are synonymous,
since the word "truck" relates to the railway wagons. The
terms should only be used then the goods are to be carried
by rail.
- Free Out - A pricing term indicating that the quoted
prices includes the cost of unloading the goods from the vessel.
- Free Ports - Free ports are a form of free trade
zone that usually encompass an entire port area (examples
include Hong Kong and Singapore). See: Free Trade Zones.
- Free Trade Agreement - 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, common currencies or uniform standards
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 free trade area is a cooperative
arrangement among two or more nations, pursuant to the General
Agreement on Tariffs and Trade, whereby trade barriers are
removed among the members. The arrangement generally includes
a customs union with a common external tariff, although there
are exceptions in which members maintain individually separate
tariff schedules for external countries.
- Free Trade Zones - "Free Trade Zones" (sometimes
called "customs free zones" or "duty free zones") is a generic
term referring to special commercial and industrial areas
at which special customs procedures allow the importation
of foreign merchandise (including raw materials, components,
and finished goods) without the requirement that duties be
paid immediately. If the merchandise is later exported, duty
free treatment is given to reexports. The zones are usually
located in or near ports of entry. Merchandise brought into
these zones may be stored, exhibited, assembled, processed
or used in manufacture prior to reexport or entry into the
national customs territory. When manufacturing activity occurs
in free trade zones, it usually involves a combination of
foreign and domestic merchandise, and usually requires special
governmental authority. Types of free trade zones include:
foreign trade zones (and foreign trade subzones); free ports;
and transit zones. See: Drawback Economic Zones Export Processing
Zones Foreign Access Zones Foreign Trade Zones Free Ports
Free Trade Area Transit Zones.
- Freight All Kinds - FAK is a shipping classification.
Goods classified FAK are usually charged higher rates than
those marked with a specific classification and are frequently
in a container which includes various classes of cargo.
- Freight Carriage ... paid to - Like C & F, "Freight/Carriage
paid to ..." means that the seller pays the freight for the
carriage of the goods to the named destination. However, the
risk of loss of or damage to the goods, as well as of 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 container or "roll on-roll off" traffic by trailer and
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/Carriage Paid to ..." but with
the addition that the seller has to procure transport insurance
against the risk of loss of damage to the goods during the
carriage. The seller contracts with the insurer and pays the
insurance premium.
- Freight Forwarder - An independent business which
handles export shipments for compensation. At the request
of the shipper, the forwarder makes the actual arrangements
and provides the necessary services for expediting the shipment
to its overseas destination. The forwarder takes care of all
documentation needed to move the shipment from origin to destination,
making up and assembling the necessary documentation for submission
to the bank in the exporter's name. The forwarder arranges
for cargo insurance, makes the necessary overseas communications,
and advises the shipper on overseas requirements of marking
and labeling. The forwarder operates on a fee basis paid by
the exporter and often receives an additional percentage of
the freight charge from the common carrier. An export freight
forwarder in the US must be licensed by the Federal Maritime
Commission to handle ocean freight and by the International
Air Transport Association (IATA) to handle air freight. An
ocean freight forwarder dispatches shipments from the United
States via common carriers, books or arranges space for the
shipments, and handles the shipping documentation.
- F - Free Out
- F.P.A. - Free of Particular Average
- F/X - Foreign Exchange
- FA - Food and Agricultural Organization
- FAAS - Foreign Affairs Administrative Support
- FAK - Freight All Kinds
- FAS - Foreign Agricultural Service, Free Alongside
Ship
- FAZ - Foreign Access Zone
- FBIS - Foreign Broadcast Information Service
- FBP - Foreign Buyer Program
- FBSEA - Foreign Bank Supervision Enhancement Act
- FC - Foreign and Commonwealth Office
- FCA - Free Carrier
- FCPA - Foreign Corrupt Practices Act
- FCSC - Foreign Claims Settlement Commission
- FDIUS - Foreign Direct Investment in the United States
- FEMA - Federal Emergency Management Agency
- FEMIDE - Federacion Mundial de Instituciones Financieras
de, Desarollo
- FET - Foreign Economic Trends
- FFP - Food For Progress
- FGIS - Federal Grain Inspection Service
- FI - Free In
- FI - Free In and Out
- FIAS - Foreign Investment Advisory Service
- FIATA - Federation Internationale des Associations
de Transitaires, et Assimilies
- FIT - Foreign Independent Tour
- FMC - Federal Maritime Commission
- FMD - Foreign Market Development Program
- FMS - Foreign Military Sales
- FMV - Foreign Market Value
- FOB - Free on Board
- FOGS - Functioning of the GATT System
- FOMEX - Fondo para el Fomento de las Exportaciones
de Productos, Manufacturados
- FONPLATA - Fondo Financiero Para el Desarrollo de
la Cuenca del Plata
- FOR/FOT - Free on Rail/Free on Truck
- FORDTIS - Foreign Disclosure and Technical Information
System
- FOREX - Foreign Exchange
- FRA - Forward (or Future) Rate Agreement
- FS - Foreign Service Officer
- FSA - Freedom Support Act
- FSC - Foreign Sales Corporation
- FSI - Foreign Service Institute
- FSN - Foreign Service National
- FSs - Feasibility Studies
- FSU - Former Soviet Union
- FT - Foreign Trade Organization
- FTA - Free Trade Agreement/Area
- FTC - Federal Trade Commission
- FTD - Foreign Trade Division
- FTI - Foreign Traders Index
- FTSR - Foreign Trade Statistical Reporting
- FTZ - Foreign Trade Zone
- FTZ-SZ - Foreign Trade Zone-Subzone
- F. & D. - Freight and demurrage
- F. & A.P. - Fire and allied perils
- f.a. - Free alongside
- F.a.a. - Free of all average
- f.a.c. - Fast as you can
- F.A.O. - Food and agriculture Organization (U.N.)
- f.a.q. - Fair average quality
- f.a.s. - Free alongside ship, Firsts and seconds
(American lumber)
- f.c. & s. - Free of capture and seizure
- F.C.A.R. - Free of claim for accident reported
- F.C.I. - Full container loads
- F.C.I.I. - Fellow of the Chartered Insurance Institute
- F.C.V. - Full contract value, Full completed value
- f.d. - Free discharge. Free delivery. Free despatch.
Free docks
- F.D.O. - For declaration purposes only
- f.f.a. - Free from alongside, Free foreign agency
- F.F.O. - Fixed and floating objects
- F.G.A. - Foreign general average
- f.h. - Fore hatch
- f.i - Free-in
- f.i.a. - Full interest admitted
- f.i.b. - Free into bunkers. Free into barge
- F.I.C.S. - Fellow of the Institute of Chartered Shipbrokers
- F.I.L. - Foreign insurance legislation
- f.i.o. - Free-in-and-out
- f.i.o.s. - Free in and out stowed
- f.i.o.s.t. - Free in and out stowed and/or trimmed
- f.i.o.t. - Free in and out trimmed
- f.i.t. - Free of income tax
- f.i.w. - Free in wagon
- F.L.E. - Fire, lightning and explosion
- f.o. - For orders, Firm offer, Full out terms (grain
trade)
- f.o.b. - free on board
- f.o.c. - Free on car, Free of charge
- F.O.C. - Flag of convenience, Free ofcommission,
Free of charge, Free of claims
- f.o.d. - Free of damage
- F.O.M. - Flag, ownership and management
- F.O.N.A.S.B.A. - Federation of National Association
of Shipbrokers and Agents
- f.o.q. - Free on quay
- f.o.r. - Free on rail
- f.o.r.t. - Full out rye terms (grain trade)
- f.o.s. - Free on steamer
- F.O.S.F.A. - Federation of Oils, Seeds & Fats
Associations
- f.o.t. - Free on truck
- f.o.w. - Free on wagon. First open water
- F.P. - Fully Paid. Floating (or open) policy
- F.P.A. - Free of particular average
- F.P.I.L. - Full premium if lost
- F.P.T. - Forepeak tank
- f.r. & c.c. - Free of riots and civil commotions
- F.R.C. - Free of reported casualty
- F.R.O. - Fire risk only
- f.r.o.f - Fire risk on freight
- f.s.l. - Full signed line (insurance)
- F.S.R. & C.C. - Free of strikes, riots and civil
commotions
- f.t. - Full terms; despatch money, payable on all
time saved on the chartered time for loading and discharging
the cargo
- F.T.A. - Freight Transport Association and Agents
- f.t.r.r. & i. - For their repective rights and
interests
- F.V.C. - Fishing vessel clauses
- f.w.d. - Fresh water damage
- f.w.l. - Full written line (insurance)
- F.W.P.C.A. - Federal Water Pollution Control Act
(USA)
- F.W.T. & G.D. - Fair wear, tear and gradual deterioration
- F/R - Freight release
- Fac. - Facultative
- Fac./oblig. - Facultative/obligatory
- FAS - United States Foreign Agricultural Service
- FCL - Full container load
- FCS - Foreign Commercial Service
- FEU - Forty-foot equivalent unit
- FIDIC - Federation internationale des ingenieurs-conseils
(International Federation of Consulting Engineers)
- FIMBRA - Financial Intermediaries, Managers and Brokers
Regulatory Association
- FLASH - Feeder-LASH
- fms. - Fathoms (timber)
- fob - Free on board
- Frt. - Freight
- ft - Feet
- Fth. - Fathom
- fwd. - Forward
- FX - Foreign Exchange
- fairway - Navigable channel.
- flag - Nationality of a ship or the country where
the ship is registered.
- flotsam - Floating wreckage from a shipwreck.
- Foreign Branch Office - A sales (or other) office
maintained in a foreign country and staffed by direct employees
of the exporter.
- 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 ship's loading equipment. The buyer arranges
ship space and informs the seller when and where the goods
are to be placed.
- Free In And Out (F.I.O.) - Cost of loading and unloading
a vessel is borne by the charterer.
- Free List - A list of goods that have been designated
as free from import duties or import port licensing requirements
in a given country .
- 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.
- Free Of Particular Average (F.P.A.) - A marine insurance
clause providing that partial loss or damage is not insured.
American condition (F.P.A.A.C.) -- Partial loss not insured
unless caused by the vessel being sunk, stranded, burned,
on fire, or in collision. English conditions (F.P.A.E.C.)
-- Partial loss not insured unless a result of the vessel
being sunk, stranded, burned, on fire, or in collision.
- Free Out (F.O.) - Cost of unloading a vessel is borne
by the charterer.
- free port - Separate area within a port where goods
which have been imported may be held without duty payment.
- free pratique - See pratique.
- Free Trade Area (FTA) - A group of two or more countries
that have eliminated tariff barriers among themselves while
not applying a uniform external tariff on imports ports from
non-participating countries. The European Free Trade Association
is the best known example of such an arrangement.
- Free Trade Zone - An area to which goods may be imported
for processing and subsequent export on duty-free basis.
- freight - Used as a term or cargo.
- Freight Forwarder - An agent whose functions are
to help expedite shipments by preparing the necessary documents
and making other arrangements for the movement of merchandise.
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