International Commercial Terms Document - D

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Deed of Assignment: A banking arrangement between the beneficiary of a letter of credit and a third party - usually the supplier of the goods - who requires an assurance of payment. The beneficiary of the credit is the assignor: part of the proceeds of the credit are irrevocably assigned to the assignee.

Deed of protest: Document evidencing that a protest has been carried out. In a collection, a bank may be asked to do this if a bill of exchange is not paid, accepted or honored at maturity.

Deferred Payment Credit: A type of letter of credit which provides for payment some time after presentation of the shipping documents by the exporter (i.e. x days after sight).

Demurrage: Charges made for storing goods at the port of destination while awaiting collection by the buyer. These may be incurred unintentionally if the goods arrive before the buyer has received the document of title.

Devaluation: The official lowering of the value of one country's currency in terms of one or more foreign currencies.

Direct Financing Lease (Direct Lease): A non-leveraged lease by a lessor (not a manufacturer or dealer) in which the lease meets any of the definitional criteria of a capital lease, plus certain additional criteria.

Discounting of bills: Where the payee of a term bill requires payment immediately, a bank may discount the bill, i.e. make immediate payment, deducting an amount for interest over the term of the bill.

Dispatch: 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 party.

Distributor: A foreign agent who sells for a supplier directly and most often collects all payments from customers and maintains an inventory of the supplier's products.

Dock receipt: A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse.

Dock Statement: A receipt issued by an ocean carrier to acknowledge the receipt of a shipment at the carrier's dock or warehouse facilities.

Document of title: A transport document (usually a bill of lading) which (when appropriately made out) entitles the bearer to claim the goods from the carrier.

Documentary collection: Procedure in which banks in the buyer's and seller's country act for the seller by presenting commercial documents to the buyer along with a payment demand (usually a bill of exchange).

Documentary credit: Sometimes used as another name for a letter of credit.

Draft: Another name for a bill of exchange.

Drawee: Party on whom a bill of exchange is drawn, i.e. who is required to make payment. In the context of collections, usually the buyer. In letters of credit, the drawee is usually a bank.

Drawer: Party drawing up the bill of exchange. Usually also the payee, to whom the money is due. Often used to designate the 'seller'.

Dumping: Exporting/importing merchandise into a country below the domestic price or the costs incurred in production and shipment.

Duty: A tax on imports imposed by the customs authority of a country. Duties are generally based on the value of the product being imported (ad valorem), weight, or quantity (specific duties), or a combination of value and other factors (compound duties). Also known as a tariff.