Glossary

A number allocated by HMRC to importers who have an acceptable deferment arrangement.

Dangerous goods require completion of a dangerous goods note (DGN) before shipment. A DGN can be used for all forms of transport except air when an IATA Dangerous Goods Declaration is used. The DGN must be signed by an employee who has been trained by an official body in all aspects of transporting dangerous goods. The DGN can be created using e-z consign.

An INCOTERM that defines who contracts and pays for the freight and insurance and where the risk in the goods passes.

An INCOTERM that defines who contracts and pays for the freight and insurance and where the risk in the goods passes.

An INCOTERM that defines who contracts and pays for the freight and insurance and where the risk in the goods passes.

There are many forms of assignment but in International Trade the assignment usually refers to a contract with the bank for them to transfer some of the proceeds from a letter of credit to a third party once funds have been received.

System whereby UK Customs will allocate duty and VAT incurred at import to an account for payment once a month.

A charge made by a shipping company or a port authority for failure to load or remove goods within the time allowed. 

The exporter enters into an agreement with either a bank or a discounting/factoring organisation whereby the exporters invoice will be paid immediately (usually 80% of invoice value). The exporter can therefore offer better terms to the buyer and will be able to manage cash flow better. There is a charge, which varies, to pay for the service.

Any deviation from the terms and conditions of a Letter of Credit, or the documents presented for payment, or any inconsistency between the documents themselves will render them discrepant. If time allows you may be able to present new correct documents but if there is insufficient time to represent the documents can be sent out in trust, which means the importer has the choice of accepting them as they are or rejecting them and withhold payment.

The term used by HMRC to identify goods shipped to other Member States. This term is preferred instead of export.

There are different types of distributors and it is essential that any agreement is made in writing so that both parties clearly understand their responsibilities under that agreement.

There a number of different agreements so be sure to use the right one for your needs.

The Department for International Trade is a UK Government department working with businesses based in the United Kingdom to assist their success in international markets, and with overseas investors looking to the UK as an investment destination.

See CAD (Cash Against Documents)

There are different types of Documentary Letters of Credit but all Letters of Credit are irrevocable which means that once in place neither the exporter nor the buyer can change any of the terms without both parties agree. The official definition of a Letter of Credit is that it is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request of the buyer (applicant) to pay a sum of money against presentation of documents complying with the terms of the credit within a set time limit.

A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving the order. The addressee is required to pay a certain sum of money to the order of a specified person or to bearer either on demand or at a fixed or determinable future time.

The drawback system allows for the repayment of Excise duty paid on goods that have not been and will not be consumed in the UK.

The person or company on whom a Bill of Exchange is Drawn.

The person or Company that draws a Bill of Exchange.

Dual-Use items are goods, software or technology (documents, diagrams etc) which can be used for both civil and military applications.  They can range from raw materials to components to complete systems, e.g.  aluminium alloys, bearings, or lasers.  They could also be items used in the production or development of military goods, e.g. machine tools, chemical manufacturing equipment and computers. Exporters will need to apply for an export licence for dual-use items which meet the defined performance characteristics detailed in the Regulation.

System whereby UK Customs will allocate duty and VAT incurred at import to an account for payment once a month.