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Glossary

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 DDP (Delivered Duty Paid)

This Incoterm represents an exporter’s maximum obligation.  It means that the exporter pays for all costs and bears all risks until the goods have been delivered to the buyer’s premises (or other named destination).  This term can be used irrespective of the mode of transport.

 DDU (Delivered Duty Unpaid)

An Incoterm that represents the exporter’s obligation to pay for all transportation costs and to bear all risks until the goods have been delivered at the place of the named destination.  However the exporter is not responsible for the payment of any duty / import clearance.

 DEQ (Delivered Ex Quay)

An Incoterm that means the same as DES, except that the passing of title (ownership and risk) between export and buyer does not occur until the goods have been unloaded at the port of destination.

 DES (Delivered Ex Ship)

An Incoterm that represents an exporter’s requirement to cover the cost of transport to the port of destination, and to provide appropriate marine insurance coverage.  The passing of title (ownership and risk) does not occur until the ship has arrived at the port of destination, but before the goods have been unloaded.

 Debt leverage

The ratio of borrowed money to total capital.

 Default

The failure of a buyer or borrower (or its guarantor) to make contractually due payments, whether of principal or of interest.  The term can also refer to a situation where a contractor or exporter is in breach of a contract.

 Disbursement

An accounting and financial term used to describe the actual payout or drawdown of cash under a loan agreement (i.e. buyer credit).  Most projects or capital goods contracts of any size provide for exporters to receive payments while their construction or production is in progress (these are called progress payments). These payments are usually made according to an agreed Disbursement Schedule and on the basis of qualifying certificates of some kind, showing that the work has been completed satisfactorily.

 Documentary Discrepancy

Occurs when one or more of the terms or conditions stipulated in a letter of credit have not been met. In the event of discrepancy, the buyer may refuse the shipment, or waive the discrepancy and proceed with the transaction.