Terms used in shipping such as Foreign,Forfaiting,Former Soviet Union ,Forty-Foot Equivalent Units etc.
This post explains about terms used in shipping such as Foreign Trade Zones,Foreign Traders Index,Foreign,Forfaiting,Former Soviet Union ,Forty-Foot Equivalent Units etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
Terms used in shipping
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.
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: Foreign Sales Corporation - An FSC is a corporation created to secure U.S. tax exemption on a portion of earnings derived from the sale of U.S. products in foreign markets. To qualify for special tax treatment, an FSC must be a foreign corporation, maintain an office outside the U.S. territory, maintain a summary of its permanent books of account at the foreign office, and have at least one director resident outside of the U.S. There are some variations:- Small FSCs are the same as FSCs, except that small FSCs must file an election with the IRS, and have their tax exemption limited to the income generated by $5 million or less in gross export revenues. Small FSCs do not have to meet foreign managment or foreign economic process requirements but must fulfill other requirements. - Shared FSCs are FSCs which are "shared" by 25 or fewer unrelated exporter "shareholders" for the purpose of reducing costs while obtaining the full tax benefits of an FSC.
Foreign-Going:Refers to the voyages of vessels engaged in international trade. Home Trade - refers to the voyages of vessels engaged in inland coastal trade at the ports of the British Isles and to the closest Continental ports on the English Channel (between the ports of Elbe and Brest).
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.
FOREX - Foreign Exchange
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.
Fork Lift:A machine used to pick up and move goods loaded on pallets or skids.
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.
Forty-Foot Equivalent Unit ( FEU ):FEU is a measure of a ship's cargo-carrying capacity. One FEU measures forty feet by eight feet by eight feet -- the dimensions of a standard forty-foot container. An FEU equals two TEUs.
Forty-Foot Equivalent Units (FEU):Refers to the standard container size of 40 feet. Two 20–foot containers or TEU's equal one FEU.
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.
The above details describes about terms called in shipping such as Foreign Trade Zones,Foreign Traders Index,Foreign,Forfaiting,Former Soviet Union ,Forty-Foot Equivalent Units etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in shipping business below this post.Terms used in shipping such as Foreign Flag,Foreign Market Value,Foreign Parent Group,Foreign Parent,Foreign Service
Related posts about free online training on overseas trade:
How to export your product?
How to import your product?
Click here to know HS code of your product
12 Major risks and solutions in Imports and Exports
Bank Pre shipment Finance to exporters
Export Promotion Councils and Commodity Boards, product wise
MEIS scheme for Indian Exporters
Mode of payments in international trade
FEMA declaration for exporters instead of SDF form
Export Promotion Councils and Commodity Boards, product wise
Apparel Export Promotion Council
List of Export promotion councils and Commodity Boards
How does a Running bond work?
How does Bill of Lading work in DP payment terms?
How does Bill of Lading work in Sight LC
Transferability of Bill of Lading
Transhipment - A redefinition
Triangular export
Triangular shipment