Deed of Assignment

A banking arrangement between the beneficiary of a letter of credit and a third party - usually the supplier of the goods - who requires an assurance of payment.

The beneficiary of the credit is the assignor: part of the proceeds of the credit are irrevocably assigned to the assignee.

Deed of protest

Document evidencing that a protest has been carried out.

In a collection, a bank may be asked to do this if a bill of exchange is not paid, accepted or honoured at maturity.

Delivered at frontier (DAF)

Incoterm

All transport modes, but designed for road and rail.

Exporter

• delivers at the frontier
• pays cost and freight to place of delivery
• provides export licence
• provides evidence of delivery

Importer

• pays cost and freight from named destination
• pays insurance
• pays import duties

Delivered duty paid (DDP)

Incoterm

Seller pays all costs (transport, insurance, import and export duties) associated with delivering
the goods to a named place, often the buyer's premises.  

Seller bears all risks up to the point of delivery.  See also DDU.

Delivered duty unpaid (DDU)

Incoterm

Exporter

• delivers to a named place
• provides an export license
• provides a transport document
• pays cost and freight to the named place
• does not pay import duties and taxes

Importer

• provides an import licence
• pays import duties and taxes

Exporter bears all risks up to the point of delivery.

Delivered ex-quay (duty paid)

Incoterm

Exporter

• delivers to a named destination
• pays freight and insurance
• pays export duties
• pays import duties
• pays unloading fees

Where importer is to pay some or all importation costs, wording may be varied, e.g.

DEQ duty unpaid

DEQ VAT unpaid

Delivered ex-ship (DES)

Incoterm

Sea or inland waterway transport only

Exporter

• delivers to a named destination
• pays freight and insurance
• pays export duties

Importer

• pays unloading fees if extra
• pays import duties and taxes

Demurrage

Charges made for storing goods at the port of destination while awaiting collection by the buyer.

These may be incurred unintentionally if the goods arrive before the buyer has received the document of title.

Discounting of bills

Where the payee of a term bill requires payment immediately, a bank may discount the bill, i.e. make immediate payment, deducting an amount for interest over the term of the bill.

Document of title

A transport document (usually a bill of lading) which (when appropriately made out) entitles the bearer to claim the goods from the carrier.

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 credit

Another name for a letter of credit.

Draft

Another name for a bill of exchange.

Drawee

Party on whom a bill of exchange is drawn, i.e. who is required to make payment.

In the context of collections, usually the buyer.

In letters of credit, the drawee is usually a bank.

Drawer

Party drawing up the bill of exchange. Usually also the payee, to whom the money is due.

Often used synonymously with 'seller'.