Legal Definitions - FGA

Definition: FGA stands for Free from General Average or Foreign General Average. If goods are FGA, it means they are not subject to any additional charges or fees in case of an accident or damage during transportation. However, if goods are not FGA, they may become liable to general average, which means that all parties involved in the transportation must share the cost of any loss or damage.

For example, if a ship carrying goods encounters a storm and some of the cargo is thrown overboard to save the ship, the cost of the lost cargo will be shared by all parties involved in the transportation, including the ship owner, the cargo owner, and the insurance company. However, if the goods are FGA, the cargo owner will not have to pay any additional charges.

Another example of FGA is when a company ships goods to another country and the goods are insured against damage or loss during transportation. If the goods are FGA, the insurance policy will not have to cover any additional charges or fees in case of an accident or damage.

Overall, FGA is an important term in international trade and transportation, as it determines the liability of parties involved in case of an accident or damage to goods.