Glossary of Customs and Trade Terms

F

FAA	Federal Aviation Administration in USA.
FAK	Freight of all kinds. Usually referring to consolidated cargo.
FAS (...named port of shipment)	Free Alongside Ship (...named port of shipment). The seller transports the goods from their place of business, clears the goods for export and places them alongside the vessel at the port of export. The title & risk pass to the buyer once delivered alongside ship by the seller. The buyer is responsible for loading the goods onto the vessel (unless specified otherwise) and for paying all costs involved in shipping the goods to the final point of destination. FAS terms of trade are used for sea or inland waterway transportation.
FCA (...named port of shipment)	Free Carrier (...named port of shipment). The seller delivers the goods to a specified carrier and place. The title & risk pass to the buyer when the seller delivers goods to the carrier. If the place chosen is the seller’s place of business, the seller must load the goods onto the transport vehicle; otherwise the buyer is responsible for loading the goods. FCA terms of trade are used for all modes of transportation.
FCL	Full container load
Feeder service	Ocean transport system involving use of centralized ports to assemble and disseminate cargo to and from ports within a geographic area. Commodities are transported between major ports, then transferred to feeder vessels for further transport to a number of additional ports.
FEU	A shipping term meaning forty foot equivalent units; eg 4x20ft containers = 2 FEU.
FIFO	First in first out – the first product that is moved into a store is deemed to be used first
Flag Carrier	An airline of one national registry whose government gives it partial or total monopoly over international routes.
Flat rack/flat bed container	A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.
FOB (...named port of shipment)	Free On Board (...named port of shipment). The seller is responsible for delivering the goods from their place of business, clearing Customs in the country of export and loading the goods onto the vessel at the port of export. At the point where the goods cross the ‘ship’s rails’, the title & risk pass to the buyer. The buyer is responsible for overseas freight & insurance costs. Where Customs value is based on CIF, the cost of overseas freight and insurance must be added to the FOB value. FOB terms of trade are used for sea or inland waterway transportation.
FOI	Freedom of Information
FOR	Free on Rail
Force Majeure	The title of a common clause in contracts, exempting the parties for non-fulfilment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war.
Fraud, Customs	Any act which a person deceives, or attempts to deceive, the Customs and thus evades, or attempts to evade, wholly or partly, the payment of import or export duties and taxes or the application of prohibitions or restrictions laid down by the statutory or regulatory provisions enforced or administered by the Customs administrations or obtains, or attempts to obtain, any advantage contrary to such provisions, thereby committing a Customs offence. (WCO)
Fraud, trade	Any offence against statutory or regulatory provisions which Customs is responsible for enforcing, committed in order to: - Evade, or attempt to evade, payment of duties/levies/taxes on movements of commercial goods; and/or - Evade, or attempt to evade, any prohibition or restrictions applicable to commercial goods; and/or - Receive or attempt to receive any repayments, subsidies or other disbursements to which there is no proper entitlement; and/or - Obtain, or attempt to obtain, illicit commercial advantage injurious to the principle and practice of legitimate business competition. (WCO)
Free trade area	Entity formed by the Customs territories of an association of States and having in its ultimate state the following characteristics: - The elimination of Customs duties in respect of products originating in any of the countries of the area, - Each State retains its Customs tariff and Customs law, - Each State of the area remains autonomous in matters of Customs and economic policy, - Trade is based on the application of rules of origin, to take account of the different Customs tariffs and prevent deflection of trade, - The elimination of restrictive regulations of commerce within the free trade area. (WCO)
Free zone	A part of the territory of a State where any goods introduced are generally regarded, insofar as import duties and taxes are concerned, as being outside the Customs territory and are not subject to the usual Customs control. (WCO)
Freight Forwarder	A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation.