DAF: Delivered at Frontier
Title, risk and responsibility for import clearance pass to buyer when delivered, but not unloaded, to named border point of destination by seller as agreed in the buyer/seller agreement; used for any mode of transportation, but mainly truck or rail, as long as delivery will be made at a land port.
Delivered at Place
Delivered at Terminal
A draft that matures on a fixed date, regardless of the time of acceptance.
DCS: Destination Control Statement
Required for all exports from the United States of items on the Commerce Control List that are not classified as EAR99. The statement is added to the commercial invoice.
DDP: Delivered Duty Paid
Title and risk pass to buyer when seller delivers goods to named place of destination consistent with the buyer/seller agreement cleared for import, but not unloaded; used for any mode of transportation.
DDU: Delivered Duty Unpaid
Title, risk and responsibility of import clearance pass to buyer when seller delivers goods to named destination point consistent with buyer/seller agreement, but not unloaded, not cleared; seller fulfills obligation when goods have been made available at the named place in the country of importation; buyer is obligated for import clearance; used for any mode of transportation.
This is an insurance policy purchased by a seller to provide protection against non-payment by a buyer due to insolvency or political/economic turmoil in the buyers country.
Deed of Assignment
(1) A banking arrangement between the beneficiary of a letter of credit and a third party - usually the supplier of the goods - who requires an assurance of payment. (2) The beneficiary of the credit in the assignor: part of the proceeds of the credit are irrevocably assigned to the assignee.
Deed of Protest
(1) Document evidencing that a protest has been carried out. (2) In a collection, a bank may be asked to do this if a bill of exchange is not paid, accepted or honored at maturity.
Deferred Letter of Credit (L/C)
Letter of credit that calls for payment at a future date, but does not require a draft.
Storage fee for inbound merchandise held beyond the free time allowed for loading or unloading at a pier or freight terminal.
DEQ: Delivered Ex Quay-Duty Paid
Title and risk pass to buyer when delivered on board the ship at the named port of destination by the seller, but unloaded, not cleared; used for ocean shipments only, port-to-port.
DES: Delivered Ex Ship
Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship, not unloaded, to destination port; used for ocean shipments only on ocean vessel port-to-port.
Official lowering of the trade value of a country’s currency in relation to other currencies by direct government decision to establish a new relationship to another agreed standard, such as the U.S. Dollar or a “basket” of currencies.
Method of payment for good in which the seller sends a draft drawn on the buyer, the shipping documents, invoices, insurance certificates, other appropriate documents directly to the buyer's bank for collection. Only an information copy of the advice is sent to the exporter's bank to establish and monitor the collection transaction for the seller.
Direct Documentary Export Collections
Same as Import Documentary Collections, except the seller is responsible for the transaction, sending all documents to the foreign bank for payment.
Sale by an exporter directly to an importer located in another country.
Delivered into store.
Also known as discounted proceeds. This refers to the seller of a draft, time promissory note, or banker’s acceptance (B/A) receiving less than face value by “selling” the draft prior to maturity. The holder (owner) of the draft or B/A receives face value upon maturity. When discount charges are for the account of the buyer, this arrangement must be agreed to in the L/C. Then, the applicant of the L/C pays the discount charges.
Discounting of Bills
Where the payee of a term bill requires payment immediately, a bank may discount the bill, i.e. make immediate payment, deducting an amount for interest over the term of the bill.
When documents presented do not conform to the requirements of the letter of credit, banks will not process them, so the buyer and/or seller must provide further instructions before the bank will process.
When documents do not conform to the Letter of Credit terms, the negotiating (paying) bank must explain the rejection of documents within a “reasonable” amount of time. Two ways a drawee bank may pay under discrepant documents: (1) Payment Under Guarantee, or (2) Get issuing bank’s authority to pay or accept drafts despite the discrepancy.
Refusal on the part of the drawee to accept a draft or pay upon maturity.
A merchant in the foreign country who purchases goods from the U.S. exporter (often at a discount) and resells them for a profit. The foreign distributor generally provides support and service for the product, relieving the U.S. exporter of these responsibilities.
Receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse facilities.
Document of Title
A transport document (usually a bill of lading) which (when appropriately made out) entitles the bearer to claim the goods from the carrier.
With reference to drafts or other items for collection, this denotes that documents are attached for delivery to a specified party on specified terms and conditions.
An order written by the seller to the bank to deliver documents against payment, or to deliver documents against acceptance to the buyer, a branch or a correspondent bank in the country of the buyer, with instructions for collection. See Direct Documentary Export Collections, Import Documentary Collections.
A letter of credit issued to support the movement of merchandise supported by shipping documents presented by the beneficiary to the Issuing Bank for payment or acceptance.
Documentary Letter of Credit (DLC)
Issued by a foreign bank on behalf of the exporter/seller, it's a Letter of Credit issued by the buyer's bank authorizing the seller to draw money up to a specified amount from the buyer's bank, provided the conditions set out in the Letter of Credit are met.
Documents Against Acceptance (D/A)
Also known as time or usance drafts, these are instructions given by a shipper to a bank indicating that export documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the attached draft.
Documents Against Payment (D/P)
Also called sight drafts or drafts, these are documentary collections in which the seller instructs the bank to release the export documents to the buyer against cash payments.
Documents of Title
Documents that confer the status of ownership upon the holder of the document e.g. the holder of a correctly endorsed bill of lading has effective ownership of the goods
An unconditional signed order by one party (the drawer) addressed to another party (the drawee) directing the drawee to pay a specified sum to the order of the third party (the payee) at a fixed or determinable future date.
Party upon whom a bill of exchange is drawn, also, very commonly the party to whom presentation is to be made in accordance with a collection instruction.
Party that issues a draft and thus stands to receive payment.
Sale of an imported commodity at a price lower than the cost of production in the exporting country. Dumping is considered an actionable trade practice when it disrupts markets and injures producers of competitive products in the importing country. Article VI of the General Agreement on Tariffs and Trade (World Trade Organization) permits the imposition of special anti-dumping duties on goods equal to the difference between their export price and their normal value.
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