D/A “Documents against Acceptance” To the Top

The buyer/importer must “accept” the draft in order to obtain control of the documents. Payment of the draft is at a later predetermined date.

DAF “DELIVERED AT FRONTIER”...named place

Seller fulfills delivery responsibility when goods available at named point on frontier (border). May be used for all transport modes, although term is generally used for transactions between adjoining countries and transport is by road, rail, or barge. Export clearance, fees, and carriage costs up to named place for the account of the seller.

DAILY HIRE

The fee paid by a charterer to a vessel owner for each day that the ship is under hire.

DAILY SETTLEMENT

Used in connection with foreign exchange credit lines, the maximum net amount of foreign exchange that may fall due on any single day.

DANGEROUS GOODS

Articles or substances capable of posing a significant risk to health, safety or property, and that ordinarily require special attention when transporting.

D/P Documents against Payment

A type of payment for goods in which the documents transferring title to the goods are not given to the buyer until he has paid the value of a draft issued against him.

DAT

Dangerous articles tariff.

DATA FREIGHT RECEIPT

A document issued by some steamship operators in place of a Bill of Lading on straight consignment shipments. Data freight system can not be used where an order bill of lading is called for.

DATA PLATE

A metal plate attached to the door of an intermodal container giving the name and address of the manufacturer and details of the container’s construction, i.e., gross weight, tare weight, dimensions etc.

DATE DRAFT

A draft that matures in a specified number of days after issuance without regard to date of acceptance.

DATE OF EXPORTATION

The “Date of exportation”, or the “time of exportation” referred to in Section 402 and 402a, Tariff Act of 1930, as amended (19 USC 1401a and 1402), means the actual date the merchandise finally leaves the country of exportation for the U.S. If no positive evidence is at hand as to the actual date of exportation by all reasonable ways and means in his power, and in so doing may consider dates on bill of lading, invoices, and other information available to him.

DATE OF IMPORTATION

Date of importation means, in the case of merchandise imported otherwise than by vessel, the date on which the merchandise arrives within the Customs territory of the U.S. In the case of merchandise imported by vessel, “date of importation” means the date on which the vessel arrives within the limits of a port in the U.S. with intent then and there to unlade such merchandise.

DATE OF LANDING

The date of landing in the case of merchandise forwarded under an entry for immediate transportation is the date of arrival at the port of destination.

DATE OF LIQUIDATION

Date of liquidation-Generally-The bulletin notice of liquidation shall be dated with the date it posted or lodged in Customs for the information of Importers. The entries for which the bulletin notice of liquidation has been prepared shall be stamped “Liquidated”, with the date of liquidation, which shall be the same as the date of the bulletin notice of liquidation. This stamping shall be deemed the legal evidence of liquidation.

DAYS

Full calendar days, including Sundays and legal holiday.

DEAD FREIGHT

A payment made by a charterer to the owner of a vessel as compensation for stowing the ship to less than its capacity.

DEAD HEAD

A trip with an empty vehicle.

DEAD SPACE

Steamer space engaged but not used by the shipper.

DEADWEIGHT TONNAGE OF VESSEL

Actual weight of fuel, provisions, water, cargo, and passengers that a vessel can carry, when loaded to its marks.

DEBASEMENT

The reduction, by governmental authority, of the amount of precious metal on the coinage below the conventional level.

DEBT

A sum of money, goods, or service owed by one person or group to another.

DEBT INSTRUMENT

A written promise to repay a debt, such as a bill, bond, banker’s acceptance, note, certificate of deposit, or commercial paper.

DEBT MONETIZATION

The expansion of the national money supply through the issuance of public debt instruments.

DEBTOR NATION

A nation with financial obligation to foreigners greater than obligations owed to it by foreigners.

DEBT SERVICE RATIO

The percentage of a nation’s export earnings that are devoted to paying interest on obligations owed to foreigners.

DECEPTIVE PACKAGING To the Top

Packaging which creates an impression that the enclosed material is more than what it really is, in terms of either quantity or quality.

DECK CARGO

Cargo carried on deck rather than stowed under deck. On-deck carriage is required for certain commodities, such as explosives.

DECIMALIZATION

The passing from another system to a decimal system of currency.

DECLARATION

A marine insurance form that is used by the insured party in reporting shipment under a Blanket Cargo Policy when no evidence of insurance is required.

DECLARED VALUE FOR CARRIAGE

The value of the goods, declared by the shipper on a bill of lading for the purpose of determining a freight rate.

DECLINE

The rejection of a firm order proposal by a principal in vessel charter negotiations.

DEDICATED SERVICE

The commitment on the part of a transportation company of a vessel, containers, or other conveyances to the exclusive use of a shipper for a specified period of time.

DEDUCTIVE VALUE METHOD

An alternative method of valuing goods for customs purposes under the Customs Valuation Code.

DEEP TANK

A tank within the hold of a vessel to accommodate liquid or semi-liquid cargoes in bulk.

DEFAULT

A neglect by a borrower to repay any amount due under a loan in full and on time.

DEFECTIVE TITLE

With reference to negotiable instrument, a title obtained through fraud or other illegal means.

DEFERRAL

The avoidance of taxes on income of foreign subsidiaries until that income is distributed to the parent.

DEFERRED REBATE

A return by a steamship carrier of a portion of freight monies paid. Rebating is specifically prohibited in trade to or from the United States by the Shipping Act of 1916. In trade routes not involving the United States, the practice is legal and accepted.

DEFERRED PAYMENT CREDIT

A letter of credit in which documents are presented immediately after shipment but the draft is not presented until a later date.

DEFICIENCY PAYMENT

A payment to agricultural producers reflecting the difference between the actual market price for a commodity and the higher, governmentally guaranteed price.

DEINDUSTRIALIZATION

This is a term generally used to describe the absolute and relative decline of manufacturing industry and the growth of the service sector which has taken place in many developed market economies in the last fifteen years.

DELAYED PAYMENT CREDIT

A letter of credit which the beneficiary provides a sight draft to the bank a specified number of days after presentation of shipping documents. This type of letter of credit is commonly used only in connection with sales where seller provides financing of more than nine months.

DEL CREDERE AGENT

A sales agent who grants credit terms to buyers of the products offered by his principal, in so doing the agent takes the risks that the buyer is capable of paying for the merchandise.

DELIVERED DUTY PAID...named destination place (DDP)

Seller fulfills delivery responsibility when goods available at named destination place, custom cleared, and duty paid. Export clearance, fees, carriage cost, import clearance, and duty to named destination place for account of seller. Risk for loss/damage remains with seller until arrival of goods at named destination place.

DELIVERED DUTY UNPAID...named destination place (DDU)

Seller fulfills delivery responsibility when goods available at named destination place. Export clearance, fees, carriage costs to named destination place for account of seller. Risk for loss/damage remains with seller until arrival of goods at named destination place.

DELIVERED EX QUAY, DUTY PAID...named port of destination (DEQ)

Seller fulfills delivery responsibility when goods available on the quay (pronounced “Ke”, like key and meaning pier, wharf or normal vessel unloading place). Used only for carrier by deep sea or other waterway. Export clearance, import clearance, fees, carriage costs to named destination port for account of seller. Risk for loss/damage remains with seller until cargo delivered onto customary cargo landing place at named destination port.

DELIVERED EX SHIP...named port of destination (DES)

Seller fulfills delivery responsibility when goods available on board vessel at named destination port. Used only for carriage by water, deep sea, or inland waterway. Export clearance, fees, and carriage costs to named destination port for account of seller. Risk of loss/damage remains with seller until vessel arrives at named port.

DELIVERING CARRIER

The transportation line by which a shipment is delivered to the consignee.

DELIVERY ALLOWANCE

An amount paid to a consignee for picking up LTL (less than container load) shipments in lieu of delivery service. Must be published in the tariff.

DELIVERY ORDER

An order from the Consignee, shipper, or owner of freight to a terminal operator, carrier, or warehouseman to deliver freight to another party. A delivery order is also an order from a steamship company to the terminal superintendent for the release of goods to a Consignee following payment of freight charges.

DELIVERY SERVICE To the Top

The carriage of inbound consignments from the airport of destination to the address of the consignee or that of his designated agent or to the custody of the appropriate government agency when required.

DEMAND DRAFT OR BILL

A draft or bill of exchange which is payable immediately upon presentation to the drawee. This type of draft is also termed a “sight” or “presentation draft”.

DE MINIMIS

Of insufficient significance to warrant judicial attention.

DE MINIMIS NON CURAT LEX

Applicable to merchandise “in part of” a material.

DEMOGRAPHIC YEARBOOK

A United Nations publication containing a collection of international demographic statistic covering 220 countries and territories.

DEMOUNTABLE BODY

A box of a motor freight vehicle (chassis or trailer) so constructed as to be used interchangeable on flat car equipment of railroads.

DEMURRAGE

Excess time taken for loading or unloading a vessel. Demurrage refers only to situation in which the charterer of shipper, rather than the vessel’s operator, is at fault.

DENSITY

Density means pounds per cubic foot. The cubage of loose articles or pieces, or packaged articles of a rectangular, elliptical (oval shaped) or square shape on one plane shall be determined by multiplying the greatest straight line dimensions of length, width, and depth in inches, including all projections, and dividing the total by 1728 (to obtain cubic feet). The density is the weight of the article divided by the cubic feet thus obtained.

DENSITY OF TRAFFIC

The amount of traffic handled per mile within a given region.

DESTINATION

The ultimate stopping place according to the Contract of Carriage.

DEPARTMENT OF COMMERCE

Supports the domestic and international commercial activities of U.S. businesses. International trade activities within the Department are primarily coordinated through the International Trade Administration. In addition, six other agencies in The Department offer specific export service.

DESPATCH MONEY

The sum paid by a vessel owner to the charterer as an incentive for completing loading or unloading operations in less than the time permitted under the charter party. When there is agreement that dispatch money will be paid, the conditions and rates are stipulated in charter agreement.

DERELICT

A vessel that has been abandoned at sea.

DEPOSITION

Written testimony given under oath.

DESTINATION

The place to which a shipment is consigned.

DESTINATION CLAUSE

A provision in a contract for the purchase of a commodity specifying the countries to which the product may be shipped, thereby preventing sale in the world market which would affect the spot price.

DESTINATION CONTROL STATEMENT

Any one of various statement which the U.S. Government requires to be displayed on export shipments and which specify the destinations for which export of the shipment has been authorized.

DETENTION

Charges assessed by a Carrier against the Consignor or Consignee as a penalty for holding a Carrier’s driver and/or trailer beyond certain stated period of “free time.” This is an Accessorial service and charge.

DEVALUATION

The lowering of the value of a country’s currency relative to gold and/or the currencies of other nations.

DEVANNING

The removal of freight.

DEVELOPED COUNTRIES

A term used to distinguish the more industrialized nations from “Developing” or less developed countries. The developed countries are sometime collectively designated as the “North”, because most of them are in the Northern Hemisphere.

DEVELOPING COUNTRIES

A wide range of countries that usually lack a high degree of industrialization, infrastructure and other capital investment, sophisticated technology, widespread literacy, and advanced living standards among their populations as a whole. The developing countries are sometimes collectively designated as the “South” because a large number of them are in the Southern Hemisphere. All the countries of Africa (except Africa), Asia and Oceania (except Australia, Japan and New Zealand), Latin America, and the Middle East are generally considered “developing countries,” as are a few European countries (Cyprus, Malta, Turkey and Yugoslavia, for example). Some experts differentiate four sub-categories of developing countries as having different economic needs and interest.

DEVIATION

The departure by a vessel from the scope or route of the planned voyage. The departure by a vessel from the announced or published course of the voyage. A court of law may find that a vessel deviating from scheduled routes causing cargo to suffer losses may impair the carrier’s legal defenses under the Carriage of Goods by Sea Act or similar national legislation.

DEVIATION ROUTES

Routes that a motor carrier may use in lieu of authorized routes.

DIFFERENTIAL

An amount added or deducted from base rate to make a rate to or from some other point or via another route.

DIFFERENTIAL DUTY To the Top

A rate of duty on a given commodity that varies according to the country of origin.

DILLON ROUND

Trade negotiations under GATT (General Agreement of Tariffs and Trade) that took place in 1960 and 1961. Named for U.S. Undersecretary of State Douglas Dillon, who proposed the negotiations. The principal result of the discussions was the adoption of a common external tariff by the European Economic Community. In response to this action by the EEC, the U.S. granted to the EEC significant concessions on agricultural exports.

DIPLOMATIC BAG

A sealed envelope or bag moving between a government and its accredited representative abroad, supported by a ‘Bordereaux’ which has been officially endorsed to indicate that the envelope or bag contains only official correspondence, for which special security measures are required.

DIRECT COLLECTION

A draft, bill of exchange, or similar instrument presented by a bank, acting as agent of the maker or holder, to the drawee for acceptance or payment.

DIRECT COSTS

Expenses which are exclusively traceable to production of a particular service or unit of output.

DIRECT EXPORTING

Sale by an exporter directly to a buyer located in a foreign country.

DIRECT RATE

A freight rate reduced for cargo moving in a direction where cargo is light, for the purpose of stimulating movements.

DIRTY FLOAT

The process whereby national monetary authorities intercede in the foreign exchange markets to prevent significant fluctuations in the values of their own or other currencies.

DIRTY SHIP

A tanker that carries crude or fuel oils, as contrasted with refined petroleum products.

DISC

Domestic International Sales Corporations.

DISCRIMINATION

Giving some shippers or receivers rates or other privileges not accorded others under practically the same conditions. Laws regulating common carriers prohibit discrimination. The term also applies to unequal treatment in the duties, quotas, or administrative controls accrued to the products of one or more nations. Generally any nation which does not enjoy most favored nation status is the subject of trade discrimination.

DISCOUNT (Commercial)

An allowance from the quoted price of goods usually made by the deduction of a certain percentage from the invoice price.

DISCOUNT (Financial)

A deduction from the face value of commercial paper in consideration of cash by the seller before a specified date.

DISCREPANCY- Letter of Credit

When documents presented to the advising or issuing bank do not conform to the terms of the Letter of Credit, it is referred to as a discrepancy.

DISHONOR

If the maker of a note refuses to pay the note upon its legal presentation to him, he is said to have “dishonored” the note of the holder. If a drawee refuses to accept or to pay for check, draft, or bill of exchange, the drawee is also said to “dishonor the instrument”. The holder must then notify the endorsers and guarantors of such instrument, if any, to be reimbursed. Proof of presentation is obtained through “Protest”.

DISPATCH

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 party.

DISPATCHER

In transportation, the organizer who is responsible for maintaining the route schedule and informing workers of when they are needed.

DISPATCH LINE

Two or more transportation lines jointly operating through fast freight schedules.

DISPLACEMENT TONNAGE OF VESSEL

The weight of the volume of water displaced by the vessel. Light displacement is equal to the weight of the ship, whereas loaded displacement equals the weight of steamer and cargo.

DISPUTE SETTLEMENT

Resolution of conflict, usually through a compromise between opposing claims, sometimes facilitated through the efforts of an intermediary. GATT Articles XXII and XXIII set out consultation procedures a Contracting Party may follow to obtain legal redress if it believes its benefits under GATT are impaired.

DISTANCE RATE

A rate that is applicable according to distance.

DISTRESS FREIGHT

Cargo carried by a ship at a depressed freight rate because, in the absence of that cargo, the vessel would be obliged to sail empty or nearly so to its next port.

DISTRIBUTION

Generally considered to be the act of delivering less-than-truckload shipments within a city or an area beyond.

DISTRIBUTION EXPORT LICENSE

A license that permits the multiple shipment of commodities under a single license to qualified foreign consignee.

DISTRIBUTION LICENSE (DL)

Replaces numerous validated licenses when there is continuous shipping of authorized products.

DISTRIBUTOR To the Top

An importer who buys goods direct from a manufacturer and distributes them in the market place to retailers.

DISTRICT DIRECTOR

Means the District Director of Customs at a headquarters port other than the port of New York, N.Y., and the regional commissioner of Customs for Customs Region II at port of New York.

DIVERSION

Any change in the billing after shipment has been received by the carrier at point of origin and prior to delivery at destination.

DIVISION

The apportionment by carriers of revenue received from joint traffic.

DOCK

Loading or unloading platform at an industrial location or carrier terminal. The space or waterway between two piers or wharves for receiving a ship.

DOCKAGE

The charge made for the use of a dock.

DOCK EXAMINATION (D.X.)

A U.S. Customs examination during which a container is opened for a thorough inspection, as opposed to a tailgate examination, which requires only a visual inspection at the exit gate. It may be necessary to devan the container in order for Customs to make its inspection.

DOCK RECEIPT

A form used to acknowledge receipt of the cargo.

DOCUMENTARY CREDIT

A commercial letter of credit providing for payment by a bank to the named beneficiary, usually the seller of merchandise, against delivery of such documents as may be specified in the credit.

DOCUMENTARY DRAFT

A draft to which documents are attached.

DOCUMENTED

Means a vessel for which a valid Certificate of Documentation, form CG 1270, issued by the U.S. Coast Guard is outstanding. Upon qualification and proper application to the appropriate Coast Guard Office, the Certificate of Documentation may be endorsed for (l) registry (2) coastwise license (3) Great Lakes license (4) fishery license (5) pleasure license.

DOCUMENT OF TITLE Evidence of entitlement or ownership, such as a carrier’s negotiable bill of lading, which allows a party to claim title to the goods in question.

DOLLAR DEFICIT

The amount by which dollar outflows to a given country exceed dollar inflows from that same country over a given period of time.

DOMESTIC CONTENT

Requirement that a certain percentage of a product be domestically produced.

DOMESTIC INTERNATIONAL SALES CORPORATION (DISC)

An export sales corporation set up by a United States company under U.S. Government authorization to promote exports from the United States by giving the exporter economic advantages not available outside such authorization.

DOMICILE

The place where draft or acceptance is made payable.

D/D “DOOR TO DOOR” Means rate applies from shipper’s door or business place to consignee’s door or business place.

D/O “DOOR TO OCEAN TERMINAL” Means rate applies from shipper’s door or business place to carrier’s destination port terminal.

D/R “DOOR TO RAIL” Means rate applies from shipper’s door or business place to destination carrier’s designated inland terminal or depot (rail or motor).

DOWN TIME A period during which a worker is idled because of a machine malfunction or because the flow of materials is interrupted. Down time is a direct cost to the company.

DOUBLE ECART

The disparity formula proposed by the EEC in the Kennedy Round. A significant disparity would exist if one country’s rate were at least twice that of another country and the difference in rates were at least 10 percentage points. The minimum 10-point spread was not applicable to semi-manufactures.

DRAFT A written order for a certain sum of money to be transferred on a certain date from the person who owes the money or agrees to make the payment (the drawee) to the creditor to whom the money is owed (the drawer of the draft).

DRAWBACK

In the parlance of the United States Customs Law, drawback means a refund or remission, in while or in part, of a customs duty paid on imported material because of a particular use or non-use of the imported materials. Drawback is considered a privilege, rather than a right, and requires compliance with the pertinent Customs law and regulations.

DRAWEE

The individual or firm on whom a draft is drawn and who owes the indicated amount.

DRAWER

The individual or firm that issues or signs a draft and thus stands to receive payment of the indicated amount from the drawee.

DRAYAGE CHARGE To the Top

The charge made for hauling freight on carts, drays, or truck and the charge paid by linehaul carriers to agents for pickup or delivery services within terminal areas.

DRAYAGE TO SHIPSIDE

The charge made for carting, draying or trucking freight to alongside a vessel.

DROP SHIP

Shipment by foreign shipper directly to the domestic customer of the importer. Price includes freight and postage.

DRY CARGO Cargo which does not require temperature control.

DRY DOCKAGE

A charge against a vessel that is placed in a dry dock for inspection or repair.

DRY DOCKAGE CLAUSE

A provision common to many time charter contracts that stipulates that the vessel shall be docked and its bottom cleaned and painted at such times as the master and charterer shall deem appropriate, but in no case less frequently than every nine months.

DRYING

For purposes of this assessment, drying is the removal of moisture from grain by various methods. Air temperature, grain velocity, and air flow rate during the drying process have a greater influence on grain quality than all the other grain handling operations combined. Drying technology varies little from country to country.

DOUBLE STACK TRAIN (DST) The transport by rail between two points of a trainload of containers with two containers, one on top of the other.

DUAL EXCHANGE MARKET A governmentally mandated system for the handling of foreign exchange transactions under which officially sanctioned imports or other approved transaction are accommodated at a given, prescribed rate of exchange while other transactions employ the market rate of exchange.

DUAL PRICING Selling an identical product for different prices in different markets. Often related to export subsidies or dumping.

DUAL-USE-ITEM

A product that has both commercial and military applications.

DUE BILL

Invoice rendered by carrier for undercharges.

DUMP CAR

An open car equipped with devices for automatically dumping its contents.

DUMPING

In international trade, the practice of selling goods abroad below cost or at a price below that charged in the domestic market in order to eliminate a surplus or to gain an edge on foreign competition, or when goods are unacceptable for the domestic market.

DUNNAGE

Material used around cargo to prevent damage, breakage, or to secure lading for transportation. The material is normally furnished by the Shipper and its weight is charged for in the rating of the shipment.

DUTIABLE LIST

The section of a nation’s tariff law that specifies those products subject to duty and the applicable rate.

DUTIABLE STATUS A determination made by customs authorities, in accordance with the laws of the importing nation, as to whether a given imported article is subject to duty, and if so, at what rate. The dutiable status is determined by classifying the merchandise.

DUTY

The tax imposed by a government on the merchandise imported from another country. The amount of duty imposed on any given article is prescribed in the nation’s customs tariff.

DUTY LIABILITY To the Top

The obligation to the government by the importation of dutiable merchandise. Unpaid duties establishes a personal indebtedness to the government and may be obtained from any assets of the importer or his estate. The government retains a lien upon the imported merchandise pending satisfaction of the debt.