Delivered at Frontier.

A draft which matures a specified number of days after issue.

Delivered

Sometimes said to be ‘delivered destination charges’. Referring to various miscellaneous charges in the port of destination; alternatively said to refer to dispatch money at discharge.

Delivered Duty Paid.

Delivered Duty Unpaid.

Freight charge to be paid even when shipment was not made, owing to failure by shipper or charterer to actually ship goods in the shipping space for which a reservation was made.

Total carrying capacity of a vessel.

The buying and selling of foreign currencies in the foreign exchange markets of the world.

Goods shipped on the deck of a ship rather than in its holds. Since deck cargo is more exposed to the elements, traders may wish to stipulate that goods not be carried on deck (except in such cases as transport of hazardous materials, in which case carriage on deck may be mandatory).

Air freight offered at cheaper rates for non-urgent shipments.

Delivery under a forward exchange contract(full or partial)is when the actual exchange of foreign currency for New Zealand dollars takes place.

An order, commonly addressed to a terminal superintendent or warehouse manager, directing the release of specified cargo to a particular receiver. The order may in some cases be issued by seller, shipper or consignee, while in other contexts the order is issued by the shipping line or carrier.Commonly, a delivery order directs delivery of part of a larger consignment, which is itself covered by a single bill of lading; i.e. the issue of several delivery orders “splits up” the cargo covered by the bill of lading: the delivery order is not a negotiable document, nor does it evidence receipt of the goods, nor does it contain the provisions of the transport contract under which the goods were shipped.

A bill of exchange payable at sight or on demand.

A guarantee usually issued by a bank, under which the beneficiary is only required to make a demand in order to receive payment. In contrast to the conditional or suretyship guarantee - which require the beneficiary to provide proof of the principal’s default, a demand guarantee only requires that the beneficiary make a simple demand, and therefore this latter type of guarantee is relatively risky in terms of exposure to an unjustified demand on the part of the beneficiary. Some protection against such an unfair demand can be obtained by making the guarantee subject to the ICC Uniform Rules for Demand Guarantees (URDG458).

The extra charges paid to a ship owner or carrier when a specified period for loading/unloading is exceeded. The demurrage may, depending on the context, be paid by the charterer or shipper.
Air cargo: The detention of containers by shippers or receivers of freight beyond a specified free time. The airlines tender carrier-owned containers to the customer for loading and unloading of the unit. In the event the container is not returned to the carrier within a specific time (usually 36 to 48 hours) a charge is assessed by the carrier for each 24 hours or fraction thereof beyond the allowed time.

A decline in the value of a currency in terms of foreign currencies.

Delivered Ex Quay.

Delivered Ex Ship.

Unloading goods from a container.

A downward change in the official parity of an exchange rate from that which it was previously set.

Unloading goods from a container.

Density, i.e. weight per cubic foot. The Dimensional Weight Rule was developed as a practice application to low density shipments under which the transportation charges are based on a cubic dimensional weight rather than upon actual weight.

The purchase by a bank or finance house of a bill of exchange at face value less interest. It is used as a financing tool, should the holder of an accepted bill of exchange require the money before the bill matures.
The person for whom the bill is discounted remains liable until the bill is paid although the discounter (bank) looks to the acceptor in the first instance should the bill not be paid. When a bill is sold prior to maturity it is also said to be sold at a discount.

Discount refers to the amount of interest for the period of finance deducted from the face value of a bill of exchange or promissory note. A discount rate is the discount expressed as a rate per cent per annum related to the face value of the bill of exchange or promissory note.

Documentary credit context: a discrepancy arises when documents presented under a documentary credit do not conform to the terms of the credit; generally, an error, contradiction or omission related to the documents constitutes the discrepancy. The bank refuses to pay against the documents unless the applicant (buyer) agrees to amend the credit or otherwise waive objections to payment under the credit.

An incentive payment offered by a ship owner to a charterer in exchange for money (also, completing loading or unloading in less time than is specified in the charter despatch) party contract (this time is often calculated as a number of ‘lay days’).

An independent person or legal entity which sells goods locally on behalf of a foreign principal. Distributors can be distinguished from agents because distributors buy the goods in their own name, then re-sell them at prices which they have some liberty to set. Distributorship is frequently based on a contract which grants the distributor exclusivity for a specific territory.

An order, commonly addressed to a terminal superintendent or warehouse manager, directing the release of specified cargo to a particular receiver. The order may in some cases be issued by seller, shipper or consignee, while in other contexts the order is issued by the shipping line or carrier.Commonly, a delivery order directs delivery of part of a larger consignment, which is itself covered by a single bill of lading; i.e. the issue of several delivery orders “splits up” the cargo covered by the bill of lading: the delivery order is not a negotiable document, nor does it evidence receipt of the goods, nor does it contain the provisions of the transport contract under which the goods were shipped.

A document certifying receipt of goods by the international carrier at the port of departure.

A method of payment under which the shipping documents relating to a particular cargo are released to the importer on payment (documents against payment: ‘D/P’) or acceptance (documents against acceptance: ‘D/A’) of a documentary draft drawn on them by the exporter. Under collections, the exporter presents a draft together with shipping documents to a bank (the remitting bank) in their country, which then forwards the documents and draft to the collecting bank in the buyer’s country. The documents, which enable the buyer to take possession of the goods, are only released by the collecting bank when the buyer either pays or accepts the draft.

A documentary credit is issued by the Importer’s bank stating its commitment to honour the draft (or otherwise pay) on presentation of specific documents by the exporter within a stated period of time. The minimum documents the importer requires in the credit usually include a commercial invoice and clean bill of lading, but may also comprise a certificate of origin, consular invoice, inspection certificate, and other documents. The most widely used type of credit in international trade is the irrevocable credit.
The following are the main types of documentary credit:
• Irrevocable: A credit which cannot be retracted or revoked once the beneficiary has been notified. (There is a presumption under the UCP500 that a credit is irrevocable.
• Advised: A credit opening, of which a local bank informs the beneficiary.
• Confirmed: A credit which has received an additional guarantee of payment by a local or highly reputed bank.
• Sight: The beneficiary is entitled to present a sight draft or sight bill of exchange, which is a call for immediate payment upon acceptance of shipping documents.
• Revolving: A credit which can be drawn against repeatedly by the beneficiary; can take a variety of different forms, depending on whether the credit is limited in terms of time, number of possible drafts, maximum quantity per draft, or maximum total quantity.
• Cumulative revolving L/C: Revolving L/C under which unused amounts can be carried forward and become available under the next draft.
• Red clause: This allows pre-shipment advances to be made to the exporter at the risk and expense of the applicant.
• Deferred: A D/C under which payment by the importer is to take place a specified time after their receipt of the shipping documents.
• Transferable: A D/C which allows the beneficiary to make part or all of their credit payable to another supplier; used in middleman/brokerage contexts; distinguishable from back-to-back D/Cs because the transferable credit requires the knowledge and authorisation of the importer (applicant/principal).
• Back to back: A system utilised by middlemen/intermediaries to finance a single transaction through the use of two D/C’s opened in succession (e.g.‘back to back’) in order to permit the middleman/broker to use the proceeds from the first credit to pay off their supplier under the second credit. The importer may be unaware that there is a middleman in this situation.
• Import: A D/C used to finance importation of goods.
• Standby: The primary function of the standby credit is to serve as a security or a guarantee rather than as a payment mechanism. Under this agreement, the beneficiary claims payment in the event that the contractual partner fails to perform or fulfil certain obligations.

An instrument which enables the holder to deal with the property described in it as if they were the owner, e.g. bill of lading.

The documents transferring title to goods are delivered to the buyer (drawee)only upon the buyer’s acceptance of the attached draft guaranteeing payment at a later date.

In the case of a sight draft, the documents transferring title to goods are released to the buyer/importer only against cash payment.

A transport service covering carriage from the seller’s premises to the buyer’s premises. Note that this term refers to a freight charge in a carriage contract between a carrier and a shipper, and thus is distinct from the issue of the Incoterm chosen in the contract of sale (an agreement between seller and buyer). Depending on the circumstances of the transaction, it could be possible to quote prices on either EXW, FCA, CPT, CIP, DDU or DDP Incoterms in conjunction with so-called ‘house to house’ transport services. Attention should be given to the inclusion of loading/unloading charges in the “house to house” rate, especially in comparison with the responsibility under the respective Incoterm for loading or unloading. The shipper should make sure that the transport service corresponds to the contractual obligations under Incoterms. It is sometimes said that ‘door to door’ services imply that loading and unloading are not included in the freight charge, but this is not a standard rule and traders should inquire in each particular case. Door to door is sometimes used synonymously with house to house, but it is claimed by some that there is a distinction between the two, namely that ‘house to house’ only refers to rental rates for containers from container yard to container yard.

An unconditional order in writing, signed by a person (drawer) such as a buyer, and addressed to another person (drawee), typically a bank, ordering the drawee to pay a stated sum of money to yet another person (payee), often a seller. A draft, also called a bill of exchange, may be payable to a named person or their order (order draft), or to bearer (bearer draft). The most common versions of a draft are:
• sight draft, which is payable on presentation or demand
• time (or usance) draft, which is payable at either:
- a future fixed (specific) date
- a future determinable date (e.g. 30, 60, 90 days, etc.).

The individual or firm on whom a draft is drawn. The drawee is instructed by the drawer to pay a specified sum of money to, or to the order of, the payee or to the bearer. In a documentary collection, the drawee is generally the buyer.

Days after sight (payment term often used in conjunction with bank drafts and documentary credits).

The date on which a bill of exchange or other instrument becomes due and payable.

The practice of selling a product in a foreign market at an unfairly low price (a price which is lower than the cost in the home market, or which is lower than the cost of production) in order to gain a competitive advantage over other suppliers. Dumping is considered an unfair trade practice under the GATT and World Trade Organisation agreements; it is regulated by national governments through the imposition of anti-dumping duties, in some cases calculated to equal the difference between the product’s price in the importing and the exporting country.