Dictionary Definitions

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D/A

See documents against acceptance.

The currency of Gambia. 1D=100 butut.

(law) (a) A loss or harm to a person or his or her property. (b) An award given to a person (usually as a result of a court action) as compensation for a loss.

dangerous goods

(air transport) Articles or substances which are capable of posing a significant risk to health, safety, or property when transported by air and which are classified according to the most current editions of the International Civil Aviation Organization (ICAO) Technical Instructions for the Safe Transport of Dangerous Goods by Air and the IATA (International Air Transport Association) Dangerous Goods Regulations. Dangerous goods may be transported domestically and internationally by air. See hazardous materials.

dangerous when wet

(shipping) These items include flammable solids that are reactive with water. (UN CLASS 4.) Examples are: magnesium; aluminum phosphide; lithium hydride; calcium carbide. Hazards are: may ignite in presence of moisture; contact with water produces flammable gas; may re-ignite after fire is extinguished; contact may cause burns to skin and eyes; skin contact may be poisonous; inhalation or vapors may be harmful. Precautions are: prohibit flames or smoking in area.

(banking) A draft which matures a specified number of days after the date it is issued, without regard to the date of acceptance.

See acceptance; bill of exchange.

The practice of granting extended credit terms by the seller to induce buyers to receive goods in advance of required delivery dates.

(shipping) The maximum carrying capacity of a ship, expressed in tons, of cargo, stores, provisions and bunker fuel. Deadweight is used interchangeably with deadweight tonnage and deadweight carrying capacity. A vessel's capacity for cargo is less than its total deadweight tonnage.

deadweight cargo

(shipping) Cargo of such weight and volume that a long ton (2,240 pounds) is stowed in an area of less than 70 cubic feet.

An individual or firm who acts as a principal in the sale of merchandise.

debt-for-export swap; debt-for-products swap

(banking/trade) Swap whereby a bank arranges to export a variety of domestic products and commodities to offset part of its outstanding claims in the country.

debt-for-nature swap

(banking/trade) Swap arranged by private conservation group to use the proceeds of debt conversions to finance conservation projects relating to park land or tropical forests.

debtor nation

(economics) A nation that is owed less foreign currency obligations that it owes other nations. See also creditor nation.

(shipping) Cargo shipped on the deck of a vessel rather than in holds below deck. Cargo shipped on deck is more likely to be adversely affected by heat, cold, rain, seawater and movement of the ship. Some shippers require that their cargo not be shipped on deck. On the other hand, certain dangerous cargo, such as explosives are required to be shipped on deck.

declaration

(insurance) A method of reporting shipments to an insurance company under an open insurance policy. This "short form" calls for the name of the vessel and sailing date, points of shipment and destination, nature of commodity, description of units comprising the shipment, the amount of insurance desired and the number of the open policy under which the declaration is made. The declaration forms are prepared by the assured and are forwarded daily, weekly, or as shipments are made. The forms are forwarded to the insurance agent or broker for transmission to the insurance company. When full information is not available at the time a declaration is made, a provisional report may be sent in. The "provisional" is closed when value is finally known. The premium is billed monthly in accordance with the schedule of rates provided by the policy. The declaration is generally not used in cases where evidence of insurance must be supplied to a customer, to banks or to other third parties in order to permit collection of claims abroad. This calls for a special marine policy, occasionally referred to as a certificate. Declarations, therefore, are usually used for import shipments, not export shipments. See open policy; special marine policy; bordereau.

declared value for carriage

(shipping/insurance) The value of goods declared to the carrier by the shipper for the purposes of determining charges, or of establishing the limit of the carrier's liability for loss, damage, or delay. See valuation charges.

declared value for customs

(U.S. Customs) The selling price of a shipment or the replacement cost if the shipment is not for resale. The amount must be equal to or greater than the declared value. See valuation.

deductible average

(insurance) The deductible amount that is subtracted from each covered average loss whereby the assured always bears part of the loss. See also average; particular average; general average; with average; free of particular average.

deductive value

(U.S. Customs) In valuation of merchandise for customs purposes, deductive value is the resale price of imported merchandise in the United States with deductions for certain items. Generally, the deductive value is calculated by starting with a unit price and making certain additions to and deductions from that price.

Unit Price: One of three prices constitutes the unit price in deductive value. The price used depends on when and in what condition the merchandise concerned is sold in the United States.

(1) Time and Condition: The merchandise is sold in the condition as imported at or about the date of importation of the merchandise being appraised. Price: The price used is the unit price at which the greatest aggregate quantity of the merchandise concerned is sold at or about the date of importation.

(2) Time and Condition: The merchandise concerned is sold in the condition as imported but not sold at or about the date of importation of the merchandise being appraised. Price: The price used is the unit price at which the greatest aggregate quantity of the merchandise concerned is sold after the date of importation of the merchandise being appraised, but before the close of the 90th day after the date of importation.

(3) Time and Condition: The merchandise concerned is not sold in the condition as imported and not sold before the close of the 90th day after the date of importation of the merchandise being appraised. Price: The price used is the unit price at which the greatest aggregate quantity of the merchandise being appraised, after further processing, is sold before the 180th day after the date of the importation.

The third price is also known as the "further processing price" or "superdeductive."

Additions: Packing costs for the merchandise concerned are added to the price used for deductive value, provided these costs have not otherwise been included. These costs are added regardless of whether the importer or the buyer incurs the cost.

Deductions: Certain items are not part of the deductive value and must be deducted from the unit price. These items include:

(1) Commissions or profits and general expense,

(2) Transportation and insurance costs,

(3) Customs duties and federal taxes,

(4) Value of further processing.

If an assist is involved in a sale, that sale cannot be used in determining deductive value.

See valuation; transaction value; identical merchandise; similar merchandise; computed value.

defense memoranda of understanding (MOU)

(U.S.) Defense cooperation agreements between the U.S. and allied nations. MOUs are signed by the U.S. Department of Defense (DOD) with allied nations and are related to research, development, or production of defense equipment or reciprocal procurement of defense items.

Defense Technology Security Administration (DTSA)

(U.S. government) DTSA is the Department of Defense (DOD) organization which reviews applications for the export of items that are subject to the dual-use license controls of the U.S. Commerce Department. DTSA has about 130-to-140 staff, is located in the Office of the Secretary, and administers DOD technology security policy so that the U.S. is not technologically surprised on the battlefield.

DTSA looks at dual-use, foreign policy, proliferation, and munitions controls and reviews applications to export dual-use commodities and munitions. Items subject to proliferation controls are reviewed by the Deputy for Non-Proliferation Policy, International Security Affairs (ISA), Defense. Address: Defense Threat Reduction Agency, 45045 Aviation Drive, Dulles VA, 20166-7517; Tel: (703) 810-4326; http://www.dtra.mil.

Defense Trade Controls (DTC)

(U.S.) DTC (formerly the Office of Munitions Control, OMC) at the U.S. Department of State administers licenses for the export of items that are exclusively, or primarily, of munitions significance. These items are listed in the International Traffic in Arms Regulations (ITAR) and the U.S. Munitions List. In circumstances in which an item may be considered either dual-use or subject to the ITAR, the State Department has the option to assert jurisdiction. In some cases, decisions about jurisdiction are made after an item has been subject to a dual-use license application sent to the Commerce Department. Commerce is never involved in State's process, unless there are matters involving dual-use or issues involving jurisdiction. Address: Defense Trade Controls, Room 228 SA/6, Department of State, Washington DC 20522-0602; Tel: (703) 875-6644.

Defense Trade Working Group

(U.S.) A committee of officials from the U.S. Departments of Commerce, Defense, State and the United States Trade Representative (USTR) was established in 1990 to coordinate agency policies and resources in areas concerned with defense expenditures. The group works with industry to identify ways to target industry needs and increase the success of industry export efforts by minimizing government impediments, streamlining procedures, and improving the availability of market information. The DTWG includes three subgroups: (1) The Defense Export Market Opportunity Subgroup, chaired by the U.S. Department of Commerce, which helps implement Administration defense export policy and enhances U.S. government support for U.S. defense exporters; (2) The European Defense Cooperation Subgroup, chaired by the U.S. Department of State, which coordinates interagency input to U.S.-NATO International Staff for the NATO Council on National Armaments Directors (CNAD) study on defense trade; and (3) The Technology Transfer/Third Country Reexport Subgroup, chaired by the U.S. Department of Defense, which works with industry to define a more proactive technology transfer regime that could be implemented within the limits of U.S. national security and industrial competitiveness interests.

deferred air freight

(shipping) Air freight of a less time sensitive nature, with delivery provided over a period of days.

deferred payment letter of credit

(banking) A letter of credit which enables the buyer to take possession of the title documents and the goods by agreeing to pay the issuing bank at a fixed time in the future. See letter of credit.

delay clause

(insurance) An insurance policy clause which excludes claims for loss of market and for loss, damage or deterioration arising from delay. This exclusion appears in almost every marine cargo insurance policy.

Insurance underwriters are exceedingly reluctant to assume any liability for loss of market, which is generally considered a "trade loss" and uninsurable. A market loss, furthermore, is an indirect or consequential damage. It is not a "physical loss or damage." See special marine policy.

del credere risk

(law) Risk that a counterparty is either unable or unwilling to fulfill his payment obligations.

delivered at frontier ... (named place)

(Incoterm) "Delivered at Frontier" (DAF) means that 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. The term "frontier" may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term. The term is primarily intended to be used when goods are to be carried by rail or road, but it may be used for any mode of transport. See Incoterms 1990 for a list of the thirteen Incoterms 1990.

delivered duty paid ... (named place of destination)

(Incoterm) "Delivered duty paid" (DDP) means that 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. While the EXW (ex works) term represents the minimum obligation for the seller, DDP represents the maximum obligation.

This term should not be used if the seller is unable directly or indirectly to obtain the import licence. If the parties wish the buyer to clear the goods for importation and to pay the duty, the term DDU (delivered duty unpaid) should be used.

If the parties wish to exclude from the seller's obligations some of the costs payable upon importation of the goods (such as value added tax (VAT)), this should be made clear by adding words to this effect: "Delivered duty paid, VAT unpaid ... (named place or destination)."

This term may be used irrespective of the mode of transport. See Incoterms 1990 for a list of the thirteen Incoterms 1990.

delivered duty unpaid ...

(named place of destination)

(Incoterm) "Delivered duty unpaid" (DDU) means that 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 to bear any risks caused by his failure to clear the goods for import in time.

If the parties wish the seller to carry out customs formalities and bear the costs and risks resulting therefrom, this has to be made clear by adding words to this effect.

If the parties wish to include in the seller's obligations some of the costs payable upon importation of the goods (such as value added tax (VAT)), this should be made clear by adding words to this effect: "Delivered duty unpaid, VAT paid ... (named place or destination)." This term may be used irrespective of the mode of transport. See Incoterms 1990 for a list of the thirteen Incoterms 1990.

delivered ex quay (duty paid) ...

(named port of destination)

(Incoterm) "Delivered Ex Quay (duty paid)" (DEQ) means that 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.

This term should not be used if the seller is unable directly or indirectly to obtain the import licence.

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."

If the parties wish to exclude from the seller's obligations some of the costs payable upon importation of the goods (such as value added tax (VAT)), this should be made clear by adding words to this effect: "Delivered ex quay, VAT unpaid ... (named port of destination)."

This term can only be used for sea or inland waterway transport. See Incoterms 1990 for a list of the thirteen Incoterms 1990.

delivered ex ship ...

(named port of destination)

(Incoterm) "Delivered Ex Ship" (DES) means that 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 has to bear all the costs and risks involved in bringing the goods to the named port of destination. This term can only be used for sea or inland waterway transport. See Incoterms 1990 for a list of the thirteen Incoterms 1990.

(shipping/law) The act of transferring physical possession, such as the transfer of property from consignor to carrier, one carrier to another, or carrier to consignee.

delivery carrier

(shipping) The carrier (transport company) whose responsibility is to place a shipment at the disposal of the consignee at the address stated on the bill of lading. See carrier; bill of lading.

delivery instructions

(shipping) Specific delivery instructions for the freight forwarder or carrier (transport company) stating exactly where the goods are to be delivered, the deadline, and the name, address, and telephone number of the person to contact if delivery problems are encountered. See also delivery order.

delivery order

(shipping) (a) A document from the consignee, shipper, or owner of freight ordering a terminal operator, carrier, or warehouseman to deliver freight to another party. (b) An order from a steamship company to the terminal superintendent for the release of goods to a consignee following payment of freight charges. (c) Order to deliver specified packages out of a combined consignment covered by one single bill of lading.

(general/statistics) An increment of a variable.

(finance/foreign exchange) Measure of the relationship between an option price and the underlying futures contract or stock price.

The delta ratio indicates by how many units the premium on an option changes for a one unit change in the value of the underlying instrument. An at-the-money option has a delta of about 0.5. The deeper the option is in-the-money, the closer the delta gets to 1 and the deeper the option is out-of-the-money, the more the delta approaches 0.

delta hedging

(banking/foreign exchange) A method used by options writers to hedge risk exposure of written options by purchase or sale of the underlying instrument in proportion to the delta. Example: the writer of a call option with a delta of 0.5 would have to buy half the amount of the instrument underlying the option (e.g., US$), which he might eventually be forced to deliver upon expiry of the option.

(banking/law) (a) A request for the payment of a debt or other amount due. (b) A demand clause is a term in a note by which the note holder can compel full payment if the maker of the note fails to meet an installment.

(law) A lease of property. A demise charter is a bareboat charter. See bareboat charter.

(shipping) (a) The detention of a freight car or ship by the shipper beyond time permitted (grace period) for loading or unloading, (b) The extra charges a shipper pays for detaining a freight car or ship beyond time permitted for loading or unloading. Used interchangeably with detention. Detention applies to equipment. Demurrage applies to cargo. See detention.

The currency of Macedonia. 1 denar=100 deni.

(shipping) (a) The weight of an article or container per cubic foot. (b) The ratio of mass to bulk or volume.

Department of Agriculture (DOA)

See United States Department of Agriculture.

Department of Commerce (DOC)

See United States Department of Commerce.

Department of Defense (DOD)

See United States Department of Defense.

Department of Energy (DOE)

See United States Department of Energy.

Department of Labor (DOL)

See United States Department of Labor.

Department of State

See United States Department of State.

Department of the Interior (DOI)

See United States Department of the Interior.

Department of the Treasury

See United States Department of the Treasury.

Department of Transportation (DOT)

See United States Department of Transportation.

deposit dealings

(banking) Money market operations.

deposit money

(banking) Also known as bank or giro money. Bank, giro and postal giro account credit balances which can be converted at any time into notes and coinage, but which are normally used for cash-less payment transactions.

deposit of estimated duties

(U.S. Customs) This refers to antidumping duties which must be deposited upon entry of merchandise into the United States which is the subject of an antidumping duty order for each manufacturer, producer or exporter equal to the amount by which the foreign market value exceeds the United States price of the merchandise. See antidumping duties; dumping.

depreciation

(economics/accounting) (a) The charges against earnings to write-off the purchase price of an asset over its useful life. (b) The decline in the value of a property or asset.

(foreign exchange) The decline in value of one currency in relation to another currency.

deputy chief of mission (DCM)

(diplomacy) Position second-in-command to ambassador in an embassy. The DCM is responsible for managing the daily operations of all departments in an embassy. Also serves as acting ambassador during the absence of the ambassador.

destination

(shipping) The place to which a shipment is consigned.

(shipping) (a) Holding a carrier's driver and/or trailer beyond a certain stated period of "free time," often resulting in the assessment of detention charges. (b) The delay in clearing goods through customs resulting in storage and other charges. See demurrage.

detention charges

(shipping) Charges assessed by a carrier against the consignor or consignee as compensation for holding a carrier's driver and/or trailer beyond a certain stated period of "free time." Detention is an accessorial service and charge. See also demurrage.

detention insurance

(insurance) Insurance coverage to pay for the costs resulting in the storage or maintenance of goods delayed in the clearance of customs at a foreign port.

devaluation

(economics) The lowering of the value of a national currency in terms of the currency of another nation. Devaluation tends to reduce domestic demand for imports in a country by raising their prices in terms of the devalued currency and to raise foreign demand for the country's exports by reducing their prices in terms of foreign currencies. Devaluation can therefore help to correct a balance of payments deficit and sometimes provide a short-term basis for economic adjustment of a national economy.

In a fixed exchange rate situation, devaluation occurs as the result of an administrative action taken by a government to reduce the value of its domestic currency in terms of gold or foreign monies.

In a free exchange rate situation, devaluation occurs as a result of the action of the foreign exchange market where the value of the domestic currency drops by market forces against a specific unit of foreign currency.

(shipping) The unloading of cargo from a container. Also called stripping.

developed countries

(economics) A term used to distinguish the more industrialized nations--including all Organization for Economic Cooperation and Development (OECD) member countries as well as the Soviet Union and most of the socialist countries of Eastern Europe--from "developing"--or less developed countries. The developed countries are sometimes collectively designated as the "North," because most of them are in the Northern Hemisphere. See also developing countries.

developing countries

(economics) A broad range of countries that generally 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 of the countries of Africa (except South 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 countries of the former Yugoslavia, for example). Some experts differentiate four sub-categories of developing countries as having different economic needs and interests: (1) A few relatively wealthy Organization of Petroleum Exporting Countries (OPEC) countries-- sometimes referred to as oil exporting developing countries--share a particular interest in a financially sound international economy and open capital markets; (2) Newly Industrializing Countries (NlC's) have a growing stake in an open international trading system; (3) A number of middle income countries--principally commodity exporters--have shown a particular interest in commodity stabilization schemes; and (4) More than 30 very poor countries ("least developed countries") are predominantly agricultural, have sharply limited development prospects during the near future, and tend to be heavily dependent on official development assistance.

difference in conditions insurance

See contingency insurance.

differential

(shipping) An amount added to or deducted from a shipping base rate between two established points to make a rate to or from some other points or via another route.

dimensional weight

(shipping) Dimensional weight refers to density, i.e., weight per cubic foot of a shipment of cargo. The weight of a shipment per cubic foot is one of its most important transportation characteristics. Some commodities, such as machinery, have a relatively high density. Others, like hats, have a relatively low density. Hence, the dimensional weight rule was developed as a practice applicable to low density shipments under which the transportation charges are based on a cubic dimensional weight rather than upon actual weight. Examples: one pound for each 194 cubic inches of the shipment in the case of most domestic air freight, one pound for each 266 cubic inches of cut flowers or nursery stock shipments, and one pound for each 194 cubic inches of most international shipments.

The currency of:

Algeria, 1DA=100 centimes;

Bahrain, 1BD=1,000 fils;

Bosnia-Herzegovina, (no symbol available, no subcurrency);

Croatia, HrD (no subcurrency in use);

Iraq, 1ID=1,000 fils;

Jordan, 1JD=1,000 fils;

Kuwait, 1 KD=1,000 fils;

Libya, 1LD=100 dirhams;

Tunisia, 1D=1,000 fils;

Yugoslavia, Yun (no subcurrency in use).

direct (foreign) investment

(economics) Investment that is made to acquire a lasting interest in an enterprise operating in an economy other than that of the investor.

(U.S.) In the United States, direct investment is defined for statistical purposes as the ownership or control, directly or indirectly, by one person of 10 percent of more of the voting securities of an incorporated business enterprise, or an equivalent interest in an unincorporated business enterprise. Direct investment transactions are not limited to transactions in voting securities. The percentage ownership of voting securities is used to determine if direct investment exists, but once it is determined that it does, all parent-affiliate transactions, including those not involving voting securities, are recorded under direct investment. See affiliate; affiliated foreign group; foreign direct investment in the United States.

The currency of:

Morocco, 1DH=100 centimes;

United Arab Emirates, 1Dh (or 1UD)=1,000 fils.

dirty floating

(shipping) The unloading of passengers or cargo from a vessel, vehicle or aircraft.

disclosure meeting

(U.S.) An informal meeting at which the International Trade Administration (ITA) discloses to parties the proceeding methodology used in determining the results of an antidumping investigation or administrative review. See dumping.

discounting

(general) The sale at less than original price value of a commodity or monetary instrument, often for immediate payment.

(banking/letters of credit) The beneficiary under a usance/term letter of credit has the possibility of discounting his claim for immediate payment. The bank credits the beneficiary with the value of the documents, less the discount, but on an unconfirmed credit, reserves the right of recourse. (See recourse.) In the case of a confirmed letter of credit the discount would be without recourse.

discount/markdown

(foreign exchange) In foreign exchange, refers to a situation where currency can be bought more cheaply at a future date than for immediate delivery. For example, if US$1 buys FF4 for delivery now, while it buys FF5 for delivery twelve months hence, then the franc is said to be at a discount against the U.S. dollar.

discount rate

(banking) (a) Annualized rate of discount applied to debt securities issued below par (e.g., U.S. Treasury bills). (b) Rate at which a central bank (Federal Reserve System in the U.S.) (re)discounts certain bills for financial institutions.

discrepancies

(banking/letters of credit) The non-compliance of documents with the terms and conditions of a letter of credit. Information (or missing information or missing documents/papers, etc.) in the documents submitted under a letter of credit, which: (1) is not consistent with its terms and conditions; (2) is inconsistent with other documents submitted; (3) does not meet the requirements of the Uniform Customs and Practice for Documentary Credits (UCPDC), brochure no. 500, 1993 revision.

If the documents show discrepancies of any kind, the issuing bank is no longer obliged to pay and, in the case of a confirmed letter of credit, neither is the confirming bank (strict documentary compliance). See letter of credit; Uniform Customs and Practice for Documentary Credits.

discrimination

(shipping) The granting of preferential rates or other privileges to some shippers or receivers which are not accorded to others under practically the same conditions. In the U.S., laws regulating common carriers prohibit discrimination.

(banking) The refusal of the maker of a promissory note to pay upon presentation of the note.

dismissal of petition

(U.S.) A determination made by the U.S. Office of Administration that an antidumping petition does not properly allege the basis on which antidumping duties may be imposed, does not contain information deemed reasonably available to the petitioner supporting the allegations, or is not filed by an appropriate interested party. See dumping.

(shipping) (a) An amount paid by a vessel's operator to a charter if loading or unloading is completed in less time than stipulated in the charter agreement. (b) The release of a container to an interline carrier.

displacement of vessel

(shipping) The weight of the quantity of water displaced by a vessel without stores, bunker fuel or cargo. Displacement "loaded" is the weight of the vessel, plus cargo and stores.

disposable income

(economics) Personal income minus income taxes and other taxes paid by an individual, the balance being available for consumption or savings.

dispute settlement

(general) Resolution of a conflict, usually through a compromise between opposing claims, sometimes facilitated through the efforts of an intermediary such as an arbiter.

(GATT) The General Agreement on Tariffs and Trade (GATT) Articles XXIl and XXIII set out consultation procedures a Contracting Party may follow to obtain legal redress if it believes its benefits under GATT are impaired. See General Agreement on Tariffs and Trades.

(law) The detention or seizure of the property of an individual or legal entity to secure that party's performance of a particular act. A court may order that property be distrained, for example, to ensure that an individual or legal entity will appear or be represented before the court at a hearing.

distribution license

(U.S.) A license that allows the holder to make multiple exports of authorized commodities to foreign consignees who are approved in advance by the U.S. Bureau of Export Administration. The procedure also authorizes approved foreign consignees to reexport among themselves and to certain approved countries. See Bureau of Export Administration.

distribution service

(shipping) A service under which an airline accepts one shipment from one shipper and, after transporting it as a single shipment, separates it into a number of parts at destination and distributes them to many receivers. See assembly service.

distributor

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

District Export Councils

(U.S.) A voluntary auxiliary of the United States and Foreign Commercial Service (US&FCS) district offices to support export expansion activities. There are 51 DECs with 1800 members which help with workshops and also provide counseling to less experienced exporters. See United States and Foreign Commercial Service.

(shipping) Any change in the billing of a shipment after it has been received by the carrier at point of origin and prior to delivery at destination. See also reconsignment.

diversionary dumping

(customs) The sale of foreign products to a third country market at less than fair value where the product is further processed and shipped to another country. See dumping.

The currency of Sao Tomé and Principe. 1Db=100 centimos.

dock

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

dock examination

(U.S. Customs) 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

(shipping) A receipt issued by a warehouse supervisor or port officer certifying that goods have been received by the shipping company. The dock receipt is used to transfer accountability when an export item is moved by the domestic carrier to the port of embarkation and left with the international carrier for movement to its final destination.

documentary collection

(banking) A method of effecting payment for goods whereby the seller/exporter ships goods to the buyer, but instructs his bank to collect a certain sum from the buyer/importer in exchange for the transfer of title, shipping and other documentation enabling the buyer/importer to take possession of the goods. The two types of documentary collection are:

(a) Documents against Payment (D/P) where the bank releases the documents to the buyer/importer only against a cash payment in a prescribed currency; and

(b) Documents against Acceptance (D/A) where the bank releases the documents to the buyer/importer against acceptance of a bill of exchange (draft) guaranteeing payment at a later date.

In documentary collections, banks act in a fiduciary capacity and make every effort to ensure that payment is received, but are liable only for the correct execution of the collection instructions, and do not make any commitment to pay the seller/exporter themselves.

Documentary collections are subject to the Uniform Rules of Collections, Brochure No. 322, revised 1978, of the International Chamber of Commerce (ICC) in Paris.

See Uniform Rules for Collections; International Chamber of Commerce.

documentary credit;

documentary letter of credit

(banking) The formal terminology for letter of credit. See letter of credit.

documentary instructions

(banking) The formal list and description of documents (primarily shipping documents) a buyer requires of the seller, especially in a documentary letter of credit. See documentation; letter of credit.

documentation

(general) All or any of the financial and commercial documents relating to a transaction.

Documents in an international trade transaction may include: commercial invoice, consular invoice, customs invoice, certificate of origin, bill of lading, inspection certificates, bills of exchange and others.

(banking) The documents required for a letter of credit or documentary collection (documents against payment or documents against acceptance) transaction. See letter of credit; documentary collection.

(customs) The documents required by the customs authority of a country to effect entry of merchandise into the country. See entry.

(shipping) The function of receiving, matching, reviewing, and preparing all the paperwork necessary to effect the shipment of cargo. This includes bills of lading, dock receipts, export declarations, manifests, etc.

documents against acceptance (D/A)

See documentary collection.

documents against payment (D/P)

See documentary collection.

The currency of:

American Samoa (uses U.S. dollar)

Anguilla, 1EC$=100 cents;

Antigua and Barbuda, 1EC$=100 cents;

Australia, 1$A=100 cents;

Bahamas, 1B$=100 cents;

Barbados, 1Bds$=100 cents;

Belize, 1Bz$=100 cents;

Bermuda, 1Ber$=100 cents;

British Virgin Islands (uses U.S. dollar);

Brunei, 1B$=100 cents;

Canada, 1Can$=100 cents;

Cayman Islands, 1CI$=100 cents;

Dominica, 1EC$-100 cents;

Fiji, 1F$=100 cents;

Grenada, 1EC$=100 cents;

Guam (uses U.S. dollar);

Guyana, 1G$=100 cents;

Hong Kong, 1HK$=100 cents;

Jamaica, 1J$=100 cents;

Kiribati (uses Australian dollar);

Liberia, 1$=100 cents;

Montserrat, 1EC$=100 cents;

Nauru (uses Australian dollar);

New Zealand, 1$NZ=100 cents;

Puerto Rico (uses U.S. dollar);

St. Christopher, 1EC$=100 cents;

St. Kitts-Nevis, 1EC$=100 cents;

St. Lucia, 1EC$=100 cents;

St. Vincent and the Grenadines, 1EC$=100 cents;

Singapore, 1S$=100 cents;

Solomon Islands, 1SI$=100 cents;

Taiwan, 1NT$=100 cents;

Trinidad and Tobago, 1TT$=100 cents;

Turks and Caicos Islands (uses U.S. dollar);

Tuvalu (uses Australian dollar);

United States, 1US$=100 cents;

Virgin Islands, U.S. & British (uses U.S. dollar);

Zimbabwe, 1Z$=100 cents.

(shipping) A piece of equipment with wheels used to move containers, pallets or freight with or without the aid of a tractor.

domestic exports

(U.S.) Exports of commodities which are grown, produced, or manufactured in the United States, and commodities of foreign origin which have been changed in the United States, including U.S. foreign trade zones, from the form in which they were imported, or which have been enhanced in value by further manufacture in the United States.

domestic international sales corporation (DISC)

(U.S.) A special U.S. corporation authorized by the U.S. Revenue Act of 1971, as amended by the Tax Reform Act of 1984, to borrow from the U.S. Treasury at the average one-year Treasury bill interest rate to the extent of income tax liable on 94 percent of its annual corporate income. To qualify, the corporation must derive 95 percent of its income from U.S. exports; also, at least 95 percent of its gross assets, such as working capital, inventories, building and equipment, must be export-related. Such a corporation can buy and sell independently, or can operate as a subsidiary of another corporation. It can maintain sales and service facilities outside the United States to promote and market its goods. DISCs can now provide a tax deferral on up to $10 million of exports so long as the funds remain in export-related investments.

(banking) The place where a draft or acceptance is made payable. See bill of exchange.

dong

The currency of Vietnam. 1D=100 xu.

door-to-door

(shipping) Shipping service from shipper's door to consignee's door. Originating carrier spots (places) empty container at shipper's facility at carrier's expense for loading by and at expense of shipper. The delivering carrier spots the loaded container at consignee's facility at carrier's expense for unloading by and at expense of consignee.

double-column tariff

(customs) An import tariff schedule listing two rates. The rates in one column are for products imported from preferred trading partner countries, while the rates in the second column are for products imported from non-preferred trading countries. See column 1 rates; column 2 rates; Harmonized Tariff Schedules of the United States.

downstream dumping

(customs) The sale of products by a manufacturer below cost to a secondary producer in its domestic market where the product is then further processed and shipped to another country. See dumping.

D/P

See documents against payment.

The currency of Greece. 1Dr=100 lepta.

draft; draft bill of exchange

See bill of exchange.

draft or draught

(shipping) The vertical distance between the waterline and the bottom of the keel of a vessel. The draft of a vessel determines the minimum depth of water in a channel or waterway required for the vessel to travel safely. See also plimsoll mark.

drawback--refund of duties

(U.S. Customs) The refund of all or part of customs duties, or domestic tax paid on imported merchandise which was subsequently either manufactured into a different article or reexported.

The purpose of drawback is to enable a domestic manufacturer to compete in foreign markets without the handicap of including in his costs, and consequently in his sales price, the duty paid on imported raw materials or merchandise used in the subsequent manufacture of the exported goods.

There are several types of drawback:

(a) Direct identification drawback provides a refund of duties paid on imported merchandise that is partially or totally used in the manufacture of an exported article. Identification of the imported merchandise from import to export is required by proper record-keeping procedures. The imported merchandise must be used in the manufacturing process and exported within 5 years from date of importation of merchandise.

(b) Substitution drawback provides for a refund of duties paid on designated imported merchandise upon exportation of articles manufactured or produced with use of substituted domestic or imported merchandise that is of the same kind or quality as the designated imported merchandise. Same kind and quality means merchandise that is interchangeable in a specific manufacturing process. The imported materials must be used in a manufacturing process within 3 years after receipt by manufacturer, the domestic material of same kind and quality as imported materials must be used in manufacturing process within 3 years of receipt of the imported material and the exported products must be manufactured within 3 years after receipt of imported material by manufacturer, and exported within 5 years of date of importation of designated material.

(c) Rejected merchandise drawback is a 99 percent refund of duties paid on imported merchandise found not to conform to sample or specification, or shipped without the consent of the consignee, if returned to Customs custody within 90 days of its original Customs release (unless an extension is granted) for examination and exportation under Customs supervision.

Questions regarding the legal aspects of drawback should be addressed to: Chief, Drawback Section, Office of Trade Operations, U.S. Customs Service, 1301 Constitution Avenue NW, Washington, DC 20229; Tel: (202) 927-0300; Fax: (202) 927-1096.

drawback system

(U.S. Customs) A part of U.S. Customs' Automated Commercial System, provides the means for processing and tracking of drawback claims. See Automated Commercial System; drawback.

(banking) The individual or firm on whom a draft is drawn and who owes the indicated amount. In a documentary collection, the drawee is the buyer. See drawer; bill of exchange.

(banking) The individual or firm that issues or signs a draft and thus stands to receive payment of the indicated amount from the drawee. In a documentary collection, the drawer is the seller. See drawee; bill of exchange.

dray

(shipping) A vehicle used to haul cargo or goods.

(shipping) The charge made for hauling freight or carts, drays or trucks.

dry cargo/ freight

(shipping) Cargo which does not require temperature control.

droit moral

(law) Moral right doctrine, which is a European legal theory that gives artists certain rights with respect to their works, including to create, disclose, and publish a work; to withdraw it from publication; to be identified as its creator; and to prevent alteration of it without permission.

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

dropoff charge

(shipping) A charge made by a transportation company for delivery of a container.

drop shipment

(shipping) A shipment of goods from a manufacturer directly to a dealer or consumer, avoiding shipment to the wholesaler (drop shipper). The wholesaler, however, is compensated for taking the order.

dry-bulk container

(shipping) A container designed to carry any of a number of free-flowing dry solids such as grain or sand.

dry-cargo container

(shipping) Any shipping container designed to transport goods other than liquids.

dual exchange rate

(foreign exchange) The existence of two or more exchange rates for a single currency.

dual pricing

The selling of identical products in different markets for different prices. This often reflects dumping practices. See dumping.

(customs) The sale of a commodity in a foreign market at less than fair value, usually considered to be a price lower than that at which it is sold within the exporting country or to third countries.

"Fair value" can also be the constructed value of the merchandise, which includes cost of production plus a mandatory 8 percent profit margin.

Dumping is generally recognized as an unfair trade practice because it can disrupt markets and injure producers of competitive products in an importing country.

Article VI of the General Agreement on Tariffs and Trade (GATT) permits imposition of antidumping duties equal to the difference between the price sought in the importing country and the normal value of the product in the exporting country. See countervailing duties.

(a) With price-price dumping, the foreign producer can use its sales in the high-priced market (usually the home market) to subsidize its sales in the low-priced export market. The price difference is often due to protection in the high-priced market.

(b) Price-cost dumping indicates that the foreign supplier has a special advantage. Sustained sales below cost are normally possible only if the sales are somehow subsidized.

(c) Diversionary dumping is the sale of foreign products to a third country at less than fair value where the product is further processed and shipped to another country.

(d) Downstream dumping is the sale of products below cost to a secondary producer in the original producer's domestic market who then further processes the product and ships it to a foreign country.

(U.S.) The U.S. Antidumping Law of 1921, as amended, considered dumping as constituting "sales at less than fair value," combined with injury, the likelihood of injury, or the prevention of the establishment of a competitive industry in the United States. The Trade Act of 1974 added a "cost of production" provision, which required that dumping determinations ignore sales in the home market of the exporting country or in third country markets at prices that are too low to "permit recovery of all costs within a reasonable period of time in the normal course of trade." The Trade Agreements Act of 1979 repealed the 1921 act, but reenacted most of its substance in Title VII of the Tariff Act of 1930.

See countervailing duties; antidumping duties; constructed value; dumping margin; fair value.

dumping margin

(customs) The amount by which imported merchandise is sold in a country below the home market or third country price or the constructed value (that is, at less than its "fair value"). For example, if the U.S. "purchase price" of an imported article is $200 and the fair value is $220, the dumping margin is $20. This margin is expressed as a percentage of the import country price. In this example, the margin is 10 percent. See dumping; fair value.

(shipping) Material placed around cargo to prevent damage or breakage by preventing movement. The material is normally furnished by the shipper and its weight is charged for in the rating of the shipment.

durable goods

(economics) Any product which is not consumed through use. Examples are automobiles, furniture, computers and machinery.

dutiable list

(customs) Items listed in a country's tariff schedule for which it charges import duty.

See Harmonized System; Harmonized Tariff Schedule of the United States.

duty

(customs) A tax levied by a government on the import, export or consumption of goods. Usually a tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).

See ad valorem; specific rate of duty; compound rate of duty.

(U.S. Customs) All goods imported into the United States are subject to duty or duty-free entry in accordance with their classification under the applicable items in the Harmonized Tariff Schedule of the United States (HTS or HTSUS). An annotated, loose-leaf edition of the HTS may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402; Tel: (202) 512-1800.

Note that duty rates are subject to the classification of goods by Customs. Articles that appear to be similar may have significantly different rates of duty. See classification.

Note also that the actual duty paid is also determined by how Customs values the merchandise. See valuation.

duty drawback

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