Glossary of Customs and Trade Terms

D

DAF (...named place)	Delivered At Frontier (...named place)The seller is responsible for all cots involved in delivering the goods to the named border point. The title, risk and responsibility for import clearance pass to the buyer when the seller delivers the goods to the nominated frontier. The buyer is responsible for paying the costs and bearing the risk of unloading the goods, clearing Customs and transporting the goods to the final destination.. DAF terms of trade are used for all modes of transportation.
DDC	Abbreviation for ‘Destination Delivery Charge.’ A charge, based on container size, that is applied in many tariffs to cargo. This charge is considered accessorial and is added to the base ocean freight. This charge covers crane lifts off the vessel, drayage of the container within the terminal and gate fees at the terminal operation.
DDP (...named port of destination)	Delivered Duty Duty Paid (...named port of destination). This form of trade represents door-to-door service. The seller is responsible for all costs involved in delivering the goods to a named place of destination and for clearing Customs in the country of import. Since the title & risk pass to the buyer when the seller delivers the goods to the named destination point, the seller bears the entire risk of loss until the goods are delivered to the final point of destination. When Customs valuation is based on CIF, it is necessary to deduct the costs of unloading, Customs clearance and inland freight and insurance. DDP terms of trade are used for all modes of transportation.
DDU (...named port of destination)	Delivered Duty Unpaid (...named port of destination). The seller is responsible for all costs involved in delivering the goods to a named place of destination. The title, risk and responsibility of duty payment pass to the buyer when the seller delivers the goods to the named destination point. The seller pays for inland transportation and insurance to the point of final destination. DDU terms of trade are used for all modes of transportation.
de facto	As it exists in practice.
de minimis	This is a Latin term, which is a shortened form of the expression de minimis non curat lex meaning ‘the law does not care about very small matters’. It is often considered more efficient to waive very small amounts of duties and taxes rather than collect them.
Declarant	Any natural or legal person who makes a Customs declaration or in whose name such a declaration is made. (WCO)
Declaration on arrival/departure	Any declaration required to be made or produced to the Customs authorities upon the arrival or departure of a means of transport by the person responsible for the means of transport or his agent and containing the necessary particulars relating to the means of transport and to the journey, cargo, stores, crew or passengers. (WCO)
Deconsolidation point	Place where loose or other non-containerised cargo is ungrouped for delivery.
de minimis	This is a Latin term, which is a shortened form of the expression de minimis non curat lex meaning ‘the law does not care about very small matters’.
demurrage	A charge made by a shipping company or a port authority for failure to load or remove goods within the time allowed.
denatured	Rendered unfit for human consumption (eg denatured alcohol)
depot, container	Container freight station or a designated area where empty containers can be picked up or dropped off.
DEQ (...named port of destination)	Delivered Ex Quay (...named port of destination). The seller is responsible for all costs involved in transporting the goods to the quay at the port of destination. The title & risk pass to the buyer when the goods are delivered on board the ship at the destination port by the seller who delivers goods on dock at the destination point. The buyer is responsible for paying duties, clearing Customs and arranging for inland freight and insurance. DEQ terms of trade are generally used for sea or inland waterway transportation.
DES (...named port of destination)	Delivered Ex Ship (...named port of destination). The seller is responsible for all costs in delivering goods to a named port of destination, and is responsible for all costs/risk of loss prior to unloading at the port of destination. The title, risk & responsibility for vessel discharge and import clearance pass to the buyer when the seller delivers the goods on board the ship to the destination port. The buyer is responsible for unloading the goods, paying duties, clearing Customs and arranging for inland transportation and insurance to the final destination. DES terms of trade are generally used for sea or inland waterway transportation.
Destination	The place to which a shipment is consigned, or The place where carrier actually turns over cargo to consignee or his agent.
Direct tax	A tax that does not relate to the consumption of goods. Includes income tax, corporation tax, capital gains tax.
Distributor	A foreign agent who sells directly for a manufacturer and maintains an inventory on hand.
Dock receipt	A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.
Document	Any medium designed to carry and actually carrying a record of data entries, it includes magnetic tapes and disks, microfilms, etc. (Annex J.1., Kyoto Convention.)
Door-to-door	Through transportation of a container and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate.
Draft	The number of feet that the hull of a ship is beneath the surface of the water.
Draft, bank	An order issued by a seller against a purchaser; directs payment, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks on checking accounts in a bank.
Draft, sight	A draft payable on demand upon presentation.
Drawback	The amount of import duties and taxes repaid under the drawback procedure. (Annex F, Kyoto Convention)
Drawback procedure	The Customs procedure which, when goods are exported, provides for a repayment (total or partial) to be made in respect of the import duties and taxes charged on the goods, or on materials contained in them or consumed in their production. (Annex F, Kyoto Convention)
Drawee	The individual or firm on whom a draft is drawn and who owes the stated amount to the drawer.
DRFS	Abbreviation for ‘Destination Rail Freight Station.’ Same as CFS at destination, except a DRFS is operated by the rail carrier participating in the shipment.
Dual channel red/green	Simplified Customs control system allowing travellers on arrival to make a Customs declaration by choosing between two types of channel. One, identified by green symbols, is for the use of travellers carrying goods in quantities or values not exceeding those admissible duty-free and which are not subject to import prohibition or restriction. The other, identified by red symbols, is for other travellers. (WCO)
Dumping	The importation of goods into a country at a price that is less than the normal price in the country of exportation.
Dunnage	Wood or other material used in stowing ship cargo to prevent its movement.
Duties and taxes	Import duties and taxes and/or export duties and taxes. (Kyoto Convention)
Duty free shop	A shop under Customs control, generally located in a sea port or Customs airport at which travellers, proceeding abroad, may acquire goods free of Customs duties and taxes. (WCO)