International Trade Finance Terms from TEFO - D

D

DAF (Delivered At Frontier ...named place)

The seller fulfils his obligation to deliver when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country.

Damages

1. A loss or harm to a person or their property.
2. The pecuniary compensation or indemnity which may be recovered by any person who has suffered loss, detriment or injury to his person, property or rights through the unlawful act, omission, or negligence of another.

Dangerous Goods

Goods which are capable of posing a health or safety risk.

Date Draft

A draft which matures a specified number of days after the date it is issued.

Date of Issue

The arbitrary date on a contract or on a financial instrument fixed as the date from which the term runs. (Neither the actual date on the instrument, nor the date the instrument was actually signed, nor the date the instrument was executed, nor the date the instrument was delivered, are considered to be the "Date of issue" or the "issuance date".)

DDP (Delivered Duty Paid...named place of destination)

The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.

DDU (Delivered Duty Unpaid... named place of destination)

The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation as well as the costs and risks of carrying out customs formalities). The buyer has to pay any additional costs and bear any risks caused by his failure to clear the goods for import in time.

Deadweight

1. In maritime terms, the deadweight of a vessel is the maximum weight of the cargo, crew, stores and bunkers that it can carry when loaded so that it settles in the water to the Plimsoll line. This is also measurable by the weight of the water the vessel displaces when fully loaded less the displacement when it was unloaded.
2. Deadweight cargo is cargo of such high density that a long ton (2240 lbs.) of such cargo can be stowed in less than 70 cubic feet.

Dealer

An individual or firm who purchases goods for resale.

Debtor Nation

A nation that is owed less foreign currency obligations than it owes other nations.

Deck Cargo

Cargo that is shipped on the deck of a vessel rather than in holds below.

Declared Value For Carriage

The value of goods declared to the carrier by the shipper for the purposes of determining charges and establishing the liability of the carrier.

Declared Value for Customs

The value of a shipment according to the customs laws of the destination country required to be declared by the shipper on the shipping documents or by the importer when he presents the goods for customs clearance.

Deferred Air Freight

Arrangements can be made according to the tariffs of some air carriers to have less urgent freight delivered at a lower cost on later flights which are more convenient for the airline.

Deferred Payment Letter of Credit

A letter of credit that allows the buyer to take possession of goods by agreeing to pay the issuing bank or the confirming bank at a fixed future date.

Del Credere Risk

A situation where a sales agent sells on credit and for an additional commission guarantees to his principal the credit of the purchaser and the performance of the contract.

Delivery

1. In the case of transportation, the act of transferring physical possession.
2. The act of actually or of constructively placing goods or property within the possession or control of another.

Delivery Carrier

The transport carrier whose responsibility it is to place a shipment at the disposal of the consignee at the named destination.

Delivery Instructions

Specific delivery instructions for the freight forwarder or carrier stating exactly to whom, where and when goods are to be delivered.

Delivery Order

A document from the consignee, shipper, or owner of freight ordering the release of freight to another party.

Demise

1. A lease of property.
2. Death. (Isn't English an interesting language?)

Demise charter

A lease of a vessel in which all control is relinquished by the owner to the charterer, and the charterer bears all the expenses of operation. Similar to bareboat charter.

Demurrage

1. In international transportation, a charge for the failure to remove cargo from a terminal within the allowed free time. Also, a charge for failure to load or unload a ship within the allowed period.
2. (USA) In domestic transportation, a penalty charge against users for use of carriers' equipment beyond the allowed free time.

DEQ (Delivered Ex Quay - Duty Paid - ...named port of destination)

The seller fulfils his obligation to deliver when he has made the goods available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto. (Note: If the parties wish the buyer to clear the goods for importation and pay the duty, the words "duty unpaid" should be used instead of "duty paid", and other costs of importation can also be excluded from the seller's obligations if this is made clear by adding words to this effect.)

DES (Delivered Ex Ship...named port of destination)

The seller fulfils his obligation to deliver when the goods have been made available to the buyer on board the ship uncleared for import at the named port of destination. The seller must bear all the costs and risks involved in bringing the goods to the named port of destination.

Destination

The place to which a shipment or person is going..

Detention

The act of keeping back or withholding either accidentally or by design a person or thing.

Devanning

The unloading of cargo from a shipping container.

Developed Countries

A term used to describe the industrialized nations.

Developing Countries

A term used to describe countries that lack strong amounts of industrialization, infrastructure, and sophisticated technology, but are beginning to build these capabilities.

Differential

An amount added to or deducted from a base shipping freight rate between two given locations to determine a new rate to or from some other point or via another route.

Direct Mail Collection (DMC)

A seller may forward his documents and instructions for collecting payment directly to a collecting bank in a foreign country, without going through the intermediary of the seller's own domestic bank.

Discharge

1. To release; liberate; annul; unburden; disencounter; dismiss. To extinguish an obligation; terminate all employment of a person; release, as from prison or military services.
2. The unloading of passengers or cargo from a vessel, vehicle, or aircraft.

Discharging

The unloading of cargo from a carrier, or of the contents from a container.

Discounted Bill

An accepted draft against which a loan is made and the interest is deducted immediately.

Discounting

1. The sale at less than original price of a commodity or monetary instrument, often for immediate payment.
2. A loan by a bank with a deduction of the interest in advance.

Discrimination

A failure to treat all persons or parties equally where no reasonable distinction can be found between those favored and those not favored. It mat be reflected in treatment, service or rates.

Dishonor

1. The refusal by a drawee to accept a draft or to pay it when due.
2. The act of disrespect or insult.

Dispatch

1.An amount paid by a vessel's operator to a charterer if loading or unloading is completed in less time than stipulated in the charter agreement.
2. a message or report to a newspaper from a correspondent, or between government services such as state or military.
3. to send to a destination.

Distribution Service

A transportation service that accepts a shipment from a shipper and at destination separates and sorts the packages and distributes them to many receivers.

Distributor

An agent who sells for a supplier at wholesale and usually maintains an inventory of the supplier's products.

Diversion

Any change in the routing of a shipment once it has been received by the carrier at point of origin and prior to delivery at destination.

Dock

1. A loading or unloading platform at an industrial location or carrier terminal.
2. A ship's berth or wharf.

Dock Examination

(USA) Examination of imported merchandise by Customs at the terminal where it is discharged from the import carrier.

Dock Receipt

A receipt issued by a vessel agent that certifies that goods have been received.

Documents Against Acceptance (D/A)

As a procedure to collect payment on an exported shipment. instructions are given that documents necessary to obtain the merchandise from customs and the carrier are to be released to a buyer only against the buyer's acceptance of a time draft drawn upon him.

Documents Upon Payment (D/P)

As a procedure to collect payment for an export shipment, instructions are given that the documents necessary for the buyer to obtain the shipment from customs and the carrier are to be released to him only upon payment of the draft. (Same as CAD)

Dolly

A piece of equipment with wheels used to move freight with or without a tractor.

Domestic Exports

Exports of goods which were grown, produced, mined, or manufactured in the country from which exported.

Domicile

That place where a person or organization has their principal residence with intent to make it their permanent home.

Door-To-Door

Shipping service from shipper's door to consignee's door.

Double-Column Tariff

A customs tariff schedule with two columns of rates, one for preferred trading partners and one for imports from others.

Downstream Dumping

The sale of products below cost or below fair value by a producer to a another producer in its own domestic market by whom the product is then further processed and exported to another country at a price lower than would otherwise be charged and thus causing injury in that country.

Drawback

(USA) A refund of duty and taxes which may be obtained upon the exportation or destruction of certain articles under certain conditions.

Drawback System

(USA) An Automated Customs System module that provides the means for processing and controlling all types of drawback entries.

Dray

A vehicle used to haul cargo or goods, usually drawn by a horse.

Drayage

The charge made for hauling freight via carts, drays or trucks.

Drop Shipment

At the request of a wholesaler, a shipment of goods from a manufacturer directly to a dealer or consumer, avoiding delivery to the wholesaler.

Drop-off

The delivery of a shipment by a shipper to a carrier for transportation.

Dry Cargo

Cargo which is of solid, dry material. It is not liquid or gas, and generally the term excludes cargo requiring special temperature controls.

Dry-Bulk Container

A shipping container designed to carry unpackaged free-flowing dry solids such as grain or sand.

Dry-Cargo Container

Any shipping container designed to transport goods other than liquids or gasses.

Dual Exchange Rate

The existence of two exchange rates for a single currency for use in different circumstances as mandated by the government.

Dual Pricing

The selling of identical products in different markets for different prices.

Dumping

The sale of goods in a foreign country at less than" fair value" (a price lower than that at which it is sold within the exporting country or to third countries), and which thereby materially injures, or threatens to materially injure, that industry in the foreign country.

Dunnage

Materials placed around cargo to prevent shifting or damage while in transit.

Durable Goods

Any product which is not consumed through use.

Dutiable List

The list of Items in a country's tariff schedule on which it charges import duty.

Duty

A tax levied by a government on the import or export of goods.(Note: The U.S. Constitution forbids the levying of taxes by the U.S. on exports. However, most foreign governments do not have this restriction,)