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l-text">Last updated: 22 Feb, 2017  
SME Glossary
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Glossary of Export Import Trade Terms Starting with - D
Words   Description
"DAF"- Delivered At Frontier DAF- Delivered At Frontier: Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation. This term is used when the goods are to be carried by rail or road. Seller: The seller is responsible to make the goods available to the buyer by the carrier till the customs border as defined in sales contract. Buyer: The buyer takes delivery of the goods at the contract agreed point border and he is responsible for bearing all customs formalities.
"DDP"- Delivered Duty Paid DDP- Delivered Duty Paid: Title and risk pass to buyer when seller delivers goods to the named destination point cleared for import. Used for any mode of transportation. Seller: The seller is responsible to make the goods available to the buyer at his risk and cost as promised by the buyer. All the Taxes and duty on importation is promised by the buyer to the seller. Buyer: The buyer is responsible to take delivery at a nominated place and pays the expenses for unloading of goods.
"DDU"- Delivered Duty Unpaid DDU- Delivered Duty Unpaid: Seller fulfills his obligation when goods have been made available at the named place in the country of importation.

Seller: The seller is responsible for all transportation cost and accept the customs duty and taxes as per defined in customs procedures.

Buyer: The buyer is responsible of the importation customs formalities.
DEPB Refers to the Duty Entitlement Pass Book to neutralise the incidence of basic customs duty on the import content of export product. This is provided by way of grant of duty credit against the export product at specified rates. The DEPB Scheme
DEQ"- Delivered Ex-Quay DEQ- Delivered Ex-Quay: Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation.
DES"- Delivered Ex-Ship DES- Delivered Ex-Ship: Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.

Seller: The seller is responsible to make the goods available to the buyer up to the named quay or after crossing the customs border.

Buyer: The buyer takes delivery of the goods from ship at destination port and pays the expenses of unloading.
DFID Department for International Development (UK)
DFRC Refers to the Duty Free Replenishment Certificate Scheme which was introduced from 1/4/2000 replacing. Transferable Advance Licensing Scheme. The scheme is available to merchant exporters as well as to manufacturer exporters.
DGFT Directorate General of Foreign Trade, which is headed by the Director General of Foreign Trade. The office of the DGFT is responsible for formulating and execution of Foreign Trade Policy, including licensing. Formerly (till 1991), was known as the Chief
DSB Dispute Settlement Body
DSP Dispute Settlement Panel
DSU Dispute Settlement Understanding
Date Draft A draft that matures in a specified number of days after the date it is issued, without regard to the date of "ACCEPTANCE".
Deactivisation Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator.
Dealing Desk or Trading Desk The desk at an international bank that trades spot and forward foreign exchange.
Debt Capacity The amount of debt that a firm chooses to borrow to support a project.
Debt-for-Equity Swap A swap agreement to exchange equity (debt) returns for debt (equity) returns over a prearranged length of time.
Decision Trees A graphical analysis of sequential decisions and the likely outcomes of those decisions.
Deemed Exports Refers to those transactions in which the goods supplied do not leave the country and the payment for the goods is received by the supplier in India.
Deferred Payment Credit A type of letter of credit which provides for payment some time after presentation of the shipping documents by the exporter.
Deferred Payments Credit Type of "LETTER OF CREDIT" providing for payment some time after presentation of shipping documents by exporter.
Deliverable Instrument The asset underlying a derivative security. For a currency option, the deliverable instrument is determined by the options exchange and is either spot currency or an equivalent value in futures contracts.
Delta-Cross-Hedge A futures hedge that has both currency and maturity mismatches with the underlying exposure.
Delta-Hedge A futures hedge using a currency that matches the underlying exposure and a maturity date that is different from, but preferably close to, the maturity of the underlying exposure.
Demand Management A business process with the intention to coordinate and influence all sources of demand for a firm's products.
Depository Receipt A derivative security issued by a foreign borrower through a domestic trustee representing ownership in the deposit of foreign shares held by the trustee.
Depreciation A decrease in a currency value relative to another currency in a floating exchange rate system.
Derivative Security A financial security whose price is derived from the price of another asset.
Destination Control Statement Any of various statements that the U.S. Government requires to be displayed on export shipments and that specify the destinations for which export of the shipment has been authorized.
Devaluation The official lowering of the value of one country's currency in terms of one or more foreign currencies.
Developed Countries The richer, more industrialized countries in the world.
Developing Country (DCs) A country that is in the process of becoming industrialized; the poorer nations of the world.
Difference Check The difference in interest payments that is exchanged between two swap counter parties.
Digital Divide The digital divide refers to the widening technological gap between the richer and the poorer countries of the world.
Direct Costs of Financial Distress Costs of financial distress that are directly incurred during bankruptcy or liquidation proceedings.
Direct Exporting Marketer takes direct responsibility for its products abroad by selling them directly to foreign customers or through local representatives in foreign markets.
Direct Financing Lease A non-leveraged lease by a lesser in which the lease meets any of the definitional criteria of a capital lease, plus certain additional criteria.
Direct Product Profitability Measuring the direct costs associated with handling a product from the warehouse until a customer buys from the retail store.
Direct Terms The price of a unit of foreign currency in domestic currency terms, such as INR 45.70/USD for a India resident. (Contrast with indirect quote.)
Discount If a bond is selling below its face value, it is said to sell at a discount.
Discounted Cash Flow A valuation methodology that discounts expected future cash flows at a discount rate appropriate for the risk, currency, and maturity of the cash flows.
Discounted Payback The length of time needed to recoup the present value of an investment; sometimes used when investing in locations with high country risk.
Discounted Payback Period Rule An investment decision rule in which the cash flows are discounted at an interest rate and the payback rule is applied on these discounted cash flows.
Discounting Calculating the present value of a future amount. The process is the opposite of compounding.
Discrepancy - Letter of Credit When documents presented do not conform to the letter of credit.
Discretionary Reserves Balance sheet accounts that are used in some countries to temporarily store earnings from the current year or the recent past.
Discriminatory Pricing The practice that selling a product or service at different prices that do not reflect a proportional difference in costs.
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 maintains an inventory of the supplier's product.
Diversifiable (unique) (unsystematic) risk A risk that specifically affects a single asset or a small group of assets. Also called unique or unsystematic risk.
DoC Department of Commerce (USA)
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.
Documentary 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 only upon the buyer's acceptance of the attached draft.
Domestic Bonds Bonds issued and traded within the internal market of a single country and denominated in the currency of that country.
Domestic Liquidity The aggregate of money supply, quasi-money or savings and time deposits, and deposit substitutes.
Draft 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.
Draft (trade bill, bill of exchange) A means of payment whereby a drawer (the importer) instructs a drawee (either the importer or its commercial bank) to pay the payee (the exporter).
Drawback Articles manufactured or produced in the India with the use of imported components or raw materials and later exported are entitled to a refund of the duty charged on the imported products or components.
Drawee The individual or firm on whom a draft is drawn and who owes the stated amount.
Drawer The individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee.
Dual Pricing The practice of selling identical products in different markets for different prices.
Dumping Exporting/Importing merchandise into a country below the costs incurred in production and shipment.
Duty A tax imposed on imports by the customs authority of a country.
Duty Exemption/scheme Duty Free Import of Inputs Allows duty-free import of inputs for exports under Advance Licence, Duty Entitlement Pass Book (DEPB) and Duty Free Replenishment Certificate (DFRC) Scheme.
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