Terms used in export business such as Documentary collection,Documentary credits,DOMERO,Double taxation etc.
This post explains about terms used in export business such as Documentary collection,Documentary credits,DOMERO,Double taxation,Drawback ,Drawer , Duty ,Duty and tax,Duty suspension etc.These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
Terms used in export business
Documentary collection :Where you draw up a bill of exchange, which allows you to keep control of your goods and raise additional finance. An overseas bank, acting on your bank's behalf, will only release the documents necessary for your customer to take possession of goods once it formally accepts the terms of the bill. Documentary collections are typically used for exports outside the European Union (EU).
Documentary Collection: This payment term is known by a number of names including documentary collections, cash against documents and payment against documents. When the product is shipped, the seller forwards the documents to the foreign buyer’s bank which holds the documents until the payment term is met. The payment term may be at sight, which means the buyer must pay prior to taking possession. The payment term also may be against acceptance of a time draft payable a predetermined number of days from the date of shipment. Unlike letters of credits (L/Cs), there is no commitment from the buyer’s bank to make payment upon presentation of the documents.
Documentary Credit D/C :A bank instrument began (issuing or opening bank), at the request of the buyer, evidencing the bank's undertaking to the seller to pay a certain sum of money provided that specific requirements set out in the D/C are satisfied.
Documentary credits :Letters of credit are the most secure method of payment (other than payment in advance). Your customer arranges a letter of credit with its bank, which then pays a corresponding bank in the UK -the advising bank -once you submit all the necessary documentation.
Documentary Draft:A draft to which documents are attached.
Documentary proof of origin (DPO) :An accurate and authentic "irrevocable" letter of credit, verified by your bank, carries little credit risk. Documentary credits are typically used for exports to customers you have not sold to before, and for customers and countries that present particular credit risks.
Documentation/Documents:See "Shipping Documents."
Documents against acceptance (D/A) - Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer (or drawee) only upon the buyer's acceptance of the attached draft.
DOMERO :A Plant Health Inspectorate (PHI) computer system for recording, processing and reporting inspections.
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.
Double taxation - Quantitative measure of the change in size/volume of economic activity, usually calculated in terms of gross national product (GNP) or gross domestic product(GDP).
Draft (or Bill of exchange) - An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named drawer at a fixed or determinable future date. See Date draft, Sight draft, Time draft.
Drawback - Articles manufactured or produced in the United States with the use of imported components or raw materials and later exported are entitled to a refund of up to 99 percent of the duty charged on the imported components. The refund of duty is known as a drawback.
Drawback - It is the import duties and taxes, either in whole or in part, refunded by a government when the imported goods are re-exported or are used in the manufacture of exported goods.
Drawback :Repayment of duty or other taxes paid on goods satisfying certain conditions. The most common forms of drawback relate to excise duty paid on goods which are subsequently removed from the UK (whether to another European Union (EU) member state or to a destination outside the EU) supplied as ship's or aircraft's stores or used in the manufacture of certain eligible products. Inward processing relief (IPR) drawback is a procedure under which customs duty and VAT are paid on import and reclaimed when the goods are re-exported.
Drawer - An individual or a firm who issues an order, draft or bill of exchange and thus stands to receive payment of the stated amount.
Dual Use: Dual use refers to a commercial item which also has a potential military application or raises a national security concern.
Dual-use - Items that have both commercial and military or proliferation applications. While this term is used informally to describe items that are subject to the EAR, purely commercial items are also subject to the EAR (see §734.2(a) of the EAR).
Dumping - It is term used when the selling of merchandise is done in another country at lower price than the home market or sometimes even below the costs incurred in production and shipment.
Dumping:Dumping occurs when a foreign producer sells a product in the United States at a price that is below that producer's sales price in the country of origin (home market), or at a price that is lower than the cost of production. The difference between the price (or cost) in the foreign market and the price in the U.S. market is called the dumping margin. Unless the conduct falls within the legal definition of dumping as specified in U.S. law, a foreign producer selling imports at prices below those of American products is not necessarily dumping.
Duopoly - A market structure in which two producers of a commodity compete with each other.
Duty - 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 factor such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).
Duty - It is the tax levied by a government on the imported merchandise.
Duty :There are two main types of duty collected by HM Revenue & Customs (HMRC) -one is import duty, which is duty charged on goods imported into the European Union (EU) and the other is excise duty, which is a UK tax on certain types of goods, such as alcohol or tobacco.
Duty and tax :Customs duty, Common Agricultural Policy (CAP) charges, excise duty and VAT, as applicable.
Duty free - Goods that are exempted from customs duties.
Duty paid terminal :An oils terminal where all of the oils in storage have borne excise duty.
Duty point :The time and place where excise duty becomes payable.
Duty representative :A person authorised and registered by HM Revenue & Customs (HMRC) to act as an agent for non-UK owners of excise goods who wish to deposit goods in a UK excise warehouse.
Duty suspension :An arrangement which allows excise goods to be produced, processed, held, received and dispatched without payment of duty. The duty chargeable on the goods is held in suspense. Duty suspension ends when the goods reach a legal point, ie the "excise duty point", at which the duty becomes due.
Duty: you may be required to pay import duty if you are bringing goods into the UK. There is no duty on goods that are in free circulation (see Free circulation) within the EU.For goods that are imported from outside the EU, the rate of duty depends on the product and the country of origin. Duty is based on the cost, insurance and freight value (ad valorem duties) of the goods. Rates of duty can vary suddenly and without warning and can have a significant effect on the value of the goods.
Duty-suspended installation :A warehouse, where oils are stored in duty suspension before delivery to home use. These are normally attached to the producer's premises, or are import warehouses. These premises used to be referred to as bonded warehouses.
E.X.W. Ex Works:Indicates that the buyer is responsible for cargo when it's available at the seller's factory.
The above details describes about terms called in export business such as Documentary collection,Documentary credits,DOMERO,Double taxation,Drawback, Drawer , Duty ,Duty and tax,Duty suspension etc These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in export trade below this post.continue reading: Terms used in export business such as Developed country,Direct investment,Direct export, Dispatch, Distributor
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