(alphabetic lookup)
D/A (Documents Against Acceptance): This is a payment method in which an exporter instructs a bank to hand over shipping and title documents to the importer only if the he accepts the accompanying bill of exchange or draft, by signing it.
D/C (Documentary Credit): This is a payment method (also called “letter of credit”) where a bank (usually in the destination country) promises to pay for a shipment, provided that the exporter submits the required documents (such as a clean bill of lading, certificate of insurance, certificate of origin) within a specified time period. A letter of credit issued by a foreign bank is sometimes confirmed by a U.S. bank (highly recommended). This confirmation means that the U.S. bank (the confirming bank) adds its promise to pay to that of the foreign bank (the issuing bank). A letter of credit should be “irrevocable,” which means it cannot be changed unless both parties agree to do so.
D/P (Documents Against Payment): Under this payment method, the exporter instructs the banks (collecting bank via remitting bank) to release the title rights and other shipping documents to the importer subject to payment.
DAP (Delivered at Place): Under this Incoterm, the seller has fulfilled his obligation to deliver when the goods are ready for unloading from the arriving carrier at the named destination. The seller bears all risks involved in bringing the goods to that destination. DAP may be used for any mode of transportation.
DAT (Delivered at Terminal): Under this Incoterm, the seller fulfills his obligation to deliver once the goods are unloaded at a named destination, and cleared for export. The seller bears all risks involved in bringing the goods to and unloading them at the destination. DAP may be used for any mode of transportation.
DDP (Delivered Duty Paid): Under this Incoterm, the seller is obligated to deliver the goods to a named place in the country of importation. The seller bears all risks and costs including import duties, taxes, delivery charges and clears for importation. DDP may used for any mode of transportation. Because the seller is responsible for clearing the goods through overseas customs (which can be problematic) this Incoterm is generally avoided by exporters, if at all possible.
De Minimis: This is a Latin term and is a shortened version of the expression “de minimis non curat lex,” meaning “the law does not care about very small matters.” It is often considered more efficient to waive very small amounts of duties and taxes rather than collect them.
Destination Control Statement (DCS): A Destination Control Statement is a legal statement required by the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR) stating that the goods you are exporting are destined to the country indicated in all the shipping documents. It is a necessary legal boundary clarifying what happens to shipments, and it essentially states that the buyer isn’t going to take the goods and forward them to another country.
Dock Receipt: This is a receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier’s dock or warehouse facilities.
Documentary Letter of Credit/Documentary Draft: This is a payment method (also called simply “letter of credit”) where a bank (usually in the destination country) promises to pay for a shipment, provided that the exporter submits the required documents (such as a clean bill of lading, certificate of insurance, certificate of origin) within a specified time period. A letter of credit issued by a foreign bank is sometimes confirmed by a U.S. bank (highly recommended). This confirmation means that the U.S. bank (the confirming bank) adds its promise to pay to that of the foreign bank (the issuing bank). A letter of credit should be “irrevocable,” which means it cannot be changed unless both parties agree to do so.
Dumping: Dumping is a term used when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. 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 antidumping duties on goods equal to the difference between their export price and their normal value.
These links updated: 4/23/18. This website has been funded in part by the U.S. Commercial Service. Copyright (c) All Rights Reserved by the District Export Council of Georgia. Image: shutterstock_1069133606.