A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

F

Factor
A mercantile agent entrusted with the possession of goods for the purpose of selling them for his principal.  Such an agent may deal with the goods in his own name.

FAK (Freight All Kinds)
Describes an airfreight rate, when no special Commodity Rate is available.

FAS (Free Alongside Ship)
An international commercial term that is used in sales contracts to signify a seller's obligation to pay the costs and assume all risks for transporting goods from his or her place of business to the point of embarkation where a vessel or plane selected by the buyer will accept the goods.

FCA (Free Carrier)
An international commercial term that is used in international sales contracts to signify that a seller must deliver goods sold, cleared for export, to a carrier or freight forwarder specified by the buyer. The seller has no obligation with respect to import licensing or insurance.

FCL (Full Container Load)

FCR (Forwarder’s Certificate of Receipt)

FIATA (International Federation of Freight Forwarders Association)

Floating Insurance Policy
A Floating Insurance Policy gives the regular overseas trader insurance in advance for all his shipments for some period ahead; the length of the period will depend on the shipments made from time to time under the policy and on the sum insured. 

FOB (Free On Board)
An international commercial term used in international sales contracts. In an FOB contract, a buyer and a seller agree on a designated FOB point. The seller assumes the cost of having goods packaged and ready for shipment from the FOB point, whether this is his/her own place of business or some intermediate point. The buyer assumes the costs and risks from the FOB point, including inland transportation costs and risks in the exporting country, as well as all subsequent transportation costs, including the costs of loading the merchandise on a vessel. If the contract stipulates "FOB vessel," the seller bears all transportation costs to the vessel named by the buyer, as well as the costs of loading the goods on that vessel. The same principle applies to the abbreviations "FOR" ("free on rail") and "FOT" ("free on truck").

Force Majeure
Describes circumstances outside the immediate control of the Exporter or Importer, and generally defined as something which could not have been anticipated even with foresight.

Forward Market
A market in which contracts for future deliveries of goods and securities on a specified date are entered into at fixed prices. The contracts themselves are popularly known as "futures." Many commodity exchanges — wool, cotton, and wheat, for example — have established forward markets that permit interested parties to hedge against changes in the prices of the raw materials they use or deal in.

Franco (Free)
A price quoted which is free of any other charges.

Free Carrier
This price is all costs to a named point of loading, to be transported by a carrier by road, rail, air or sea.

Free Circulation
A piece of EU terminology describing goods free to move within the EU, if they were produced in the EU, or on their originally arrival in the EU Import Duty, VAT and any other applicable duty has been paid.

Free Domicile
This price is all costs including insurance and transport of delivery to the overseas buyer’s address.

Free List
A list of goods not subject to import duties or import-licensing requirements in a particular country.

FOB (Free On Board)
This price is all costs of the goods loaded on board a ship whose destination is stated in the commercial contract.

Free Trade
A theoretical concept that assumes international trade unhampered by government measures such as tariffs or non-tariff barriers. The objective of trade liberalization is to achieve "freer trade" rather than "free trade," it being generally recognized among trade policy officials that some restrictions on trade are likely to remain in effect for the foreseeable future.

Free Zone
An area within a country (a seaport, airport, warehouse, or any designated area) regarded as being outside its customs territory. Importers may therefore bring goods of foreign origin into such an area without paying customs duties and taxes, pending their eventual processing, transshipment, or re-exportation. Free zones were numerous and prosperous during an earlier period when tariffs were high. Some still exist in capital cities, transport junctions, and major seaports, but their number and prominence have declined as tariffs have fallen in recent years. Free zones may also be known as "free ports," "free warehouses," "free trade zones," and "foreign trade zones."

Freight Forward
When goods are sent freight forward, the airline, shipping company, haulier collects the freight costs from the consignee before parting with the cargo.  He will usually have a lien on the cargo for the cost of the freight.

Freight Forwarder
A person hired to move shipments from a foreign location to a domestic location, or a portion of the way. Freight forwarders handle many of the formalities involved in importing such shipments.
A forwarder will also advise on suitable packing for the particular journey or commodity.  He can prepare the various documents required for the different countries, giving advice on those, which the exporter must by law prepare himself.
Freight forwarders are often called clearing agents or act as a clearing agent when dealing in imports.