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| GLOSSARY |
F
|
Financial document
Document relating to payment.
The bill of exchange is the financial document most commonly used in collections and letters of credit.
Promissory notes are sometimes used in collections.
Forward contract
A contract for the sale or purchase of a given amount of foreign currency at a future time at a rate of exchange that is fixed when the contract is made.
Fixed forward contract
Currency is bought or sold at a given future date.
Forward option contract
Currency must be bought or sold within a given period of time.
Free Alongside Ship
Incoterms 2010 rule - for sea and inland waterway only
Seller
Buyer bears all costs thereafter.
Risk transfers to buyer when goods are made available alongside ship
Free Carrier (FCA)
Incoterms 2010 rule- may be used for any transport mode
Seller delivers goods to carrier at named place, usually prior to main carriage.
Buyer bears all costs thereafter.
Common for containerised shipments.
Risk transfers to buyer when goods are taken in charge by carrier.
Free On board (FOB)
Incoterms 2010 rule - for sea and inland waterway only
Seller pays for loading
goods onto vessel, but not for costs thereafter.
Risk transfers to buyer when goods have been loaded on board.
Freight Forwarders' Receipt
Transport document issued by Freight Forwarder. Not a document of title.