Terms used in international trade business such as Dock receipt,Document of title,Documentary Collection,Documentary credits, Documentary draft etc.
This post explains about terms used in international trade business such as Distributor, Dock receipt,Document of title,Documentary Collection,Documentary credits, Documentary draft,Draft,Door-to-door , Drawback Made Easy 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 international trade business
Distributor: The foreign distributor is a merchant who purchases goods from a US exporter (takes title of the goods and often at a substantial discount) and resells it for a profit. The foreign distributor generally provides support and service for the product, thus relieving the exporter of these responsibilities. The distributor usually carries an inventory of products and a sufficient supply of spare parts and also maintains adequate facilities and personnel for normal servicing operations. Distributors typically handle a range of non-conflicting but complementary products. End users do not usually buy from a distributor; they buy from retailers or dealers.
Diversion - Change made in the route of a shipment.
Dk. - Dock.
DKR:Danish Kroner
Dock receipt - A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse facilities. Also see Warehouse receipt.
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 - Evidence of entitlement or ownership, such as a carrier's negotiable bill of lading, which allows a party to claim title to the goods in question.
Documentary collection - 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 him by the exporter.
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 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.P. 3
Documentary collection: where you draw up a bill of exchange (see 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 formally accepts the terms of the bill. Documentary collections are typically used for exports outside the EU to customers you have an established relationship with.
Documentary credit (D/C) - See Letter of credit.
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 pays a corresponding bank in the UK - the advising bank - once you submit all the necessary documentation. 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.
Documentary draft - A draft to which documents are attached.
Documentation/Documents:See "Shipping Documents."
Documents against acceptance (D/A) - Instructions given by a shipper to a bank indicating that documents transferring possession rights and/or title to goods should be delivered to the buyer (or drawee) only upon the buyer’s acceptance of the attached draft.
Documents against payment (D/P) - In the case of a sight draft, the documents transferring title to goods are released to the buyer/importer only against cash payment.
Doing Your Duty - Product Classification According to the Harmonized Tariff Schedule of the United States - If your company is going to succeed in international trade, one of the most basic—and important—requirements is identifying the correct classification for your products. This book will teach you how to develop those harmonized code classification skills.
Domestic Consignee - Normally, the U.S. consignee on a domestic Bill of Lading. For instance, you may prepare a short form Straight Bill of Lading to send your goods to your Freight Forwarder's warehouse. In this case, your Freight Forwarder would be your domestic consignee.
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.
Domestic transportation - Transportation between places within the United States other than through a foreign country.
Door-to-door - 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).
DOT - Department of Transportation.
Double Stack Train (DST) - Rail car train capable of carrying two forty-foot equivalent containers, one on top of each other.
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.
Draft:A written order by one party for a second party to make payment to a third party. They are paper-based payments which are normally ordered in advance and posted overseas
Draft:The same as a "bill of exchange." A written order for a certain sum of money, to be transferred on a certain date from the person who owes the money or agrees to make the payment (the drawee) to the creditor to whom the money is owed (the drawer of the draft). See "Date Draft," "Documentary 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 (Import):The repayment, up to 99%, of customs duties paid on merchandise which later is exported, as part of a finished product, is known as a drawback. It refers also to a refund of a domestic tax which has been paid, upon exportation of imported merchandise.
Drawback Made Easy - As an exporter, you may be exporting goods that you first imported into the United States. If you are, you may be eligible to receive a refund of the U.S. Customs duties you had to pay upon import. This book provides an overview of the process, who's eligible, and how a drawback is filed.
Drawee - Individual or firm on whom a draft is drawn and who owes the stated amount. Compare Drawer. Also see Draft.
The above details describes about terms called in international trade business such as Distributor, Dock receipt,Document of title,Documentary Collection,Documentary credits, Documentary draft,Draft,Door-to-door , Drawback Made Easy etc. These phrases may help importers and exporters on their day to day export import business activities. The readers can also add more information about terms used in international business trade below this post.Terms used in international trade business such as Dumping Margin,Dunnage, Duty Rates ,Economic Sanctions, ,economic risk
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