Glossary
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D
Dangerous Goods Declaration (DGD)
Declaration required when shipping hazardous or potentially hazardous goods. This is sometimes called the Dangerous Goods Note (DGN). The DGD is available from SITPRO approved printers, the Freight Transport Association or a wide range of retailers.Dangerous Goods Note
Declaration required when shipping hazardous or potentially hazardous goods. See Dangerous Goods Declaration.Dark smoke
Dark smoke is any smoke that appears to be as dark or darker than shade 2 on the Ringelmann Chart. Burning of fossil fuels (coal, oil and gas) and wood may release dark smoke into the air. Dark smoke creates high levels of carbon monoxide and carbon dioxide. Both contribute to greenhouse gases and are linked to climate change.Days of grace
Number of days for which insurance cover continues beyond the actual expiry date of a renewable policy. If the renewal premium is not paid within this period, the policy lapses.De minimis
Short for the Latin phrase de minimis non curat lex - the law does not concern itself with trifles or insignificant issues.De novo
Start afresh (Latin). Starting a new contract on the same basis as the old.Debenture
This is a long-term loan to a company, usually at a fixed rate of interest and for a specific term. Debenture holders are creditors of the company. A debenture normally contains a fixed charge over a specific asset or assets of the company and/or a floating charge over the company's general assets, eg stock. In the event of insolvency, fixed charge holders have a secured claim on the assets to which the charge attaches. Floating charge holders are paid out ahead of unsecured creditors in the distribution of the company's remaining assets. Debentures are marketable securities.Debt to equity ratio
A measure of the gearing of a business, calculated as long-term debt divided by shareholder funds. Banks are very reluctant to lend money to businesses that are highly geared.Debtor
Someone who owes money.Declarant
The person legally responsible for the accuracy of the information given in a declaration to customs. This includes the accuracy of any supporting documents relating to the declaration.Declaration
A declaration made in the appropriate form to customs indicating the intention of the declarant to declare goods to the export or import procedure.Deed of Gift
A legal document which transfers ownership of the special stamp to customs while local export control traders retain the stamp for authenticating community transit documents.Deferment account
An account underwritten by a bank or insurance company to which import duties due are posted.Deferment approval number (DAN)
A unique reference number issued to a trader by the central deferment office, part of HM Revenue & Customs (HMRC), to identify the trader's duty deferment account. Deferment approval number holders can apply to HMRC for a Standing Authority for their agent or freight forwarder to quote their number when acting on their behalf.Deferment trader
A trader who is approved by HM Revenue & Customs to defer the payment of tax and duties. Conditions apply.Deferred premium
The part of a premium which, following agreement with the insurer, is payable by monthly, quarterly or half-yearly instalments.Deflation
A decline in the general level of prices in the economy.Delivered at frontier (named place) (DAF)
An Incoterm, where the seller clears the goods for export and pays for delivery. The goods are delivered - not unloaded or cleared for import - when they arrive at the named place at the frontier of the importing country but outside the customs border. The buyer clears the goods for import and is responsible for all costs and risks from this point.Delivered duty paid (named place of destination) (DDP)
An Incoterm, where the seller clears the goods for export and pays for delivery to the named destination. The seller meets all the costs and risks of clearing the goods for import, though the buyer may agree to bear some of the costs. The goods are delivered when the seller places the goods at the buyer's disposal at the named destination cleared for import but usually not unloaded.Delivered duty unpaid (named place of destination) (DDU)
An Incoterm, where the seller clears the goods for export and pays for delivery. The goods are delivered when they arrive at the named destination place and placed at the disposal of the buyer, not cleared for import or unloaded. The buyer is responsible for clearing the goods for import and the associated costs and risks, though the seller can agree to bear some of these costs.Delivered ex quay (named port of destination) (DEQ)
An Incoterm, where the seller clears the goods for export and pays for delivery. The goods are delivered when they're placed on the quay at the named port of destination. The buyer is responsible for clearing the goods for import and the associated costs, unless agreed otherwise.Delivered ex ship (named port of destination) (DES)
An Incoterm, where the seller clears the goods for export and pays for delivery. Delivery occurs when the goods are placed at the disposal of the buyer on board the ship at the named port of destination. From this point the buyer bears the costs and risks of clearing the goods for import and unloading.Department for Business Innovation & Skills (BIS)
Is the UK government department responsible for building a dynamic and competitive UK economy to create the conditions for business success, promote innovation, enterprise and science, and assist people to attain the skills and opportunities to succeed. Formerly known as the Department for Business, Enterprise and Regulatory Reform.Department for Business, Enterprise and Regulatory Reform (BERR)
See Department for Business, Innovation & Skills.Department for Environment, Food and Rural Affairs (Defra)
The UK government department responsible for the environment, food and farming, and for rural matters. Defra is tasked with securing a healthy natural environment, a sustainable, low-carbon economy, a thriving farming sector and a sustainable, healthy and secure food supply.Department for International Development (DFID)
The department responsible for leading the UK government's fight against world poverty and fostering a new 'aid relationship' with governments of developing countries.Depositor in warehouse
The person bound by the declaration placing the goods under the customs warehousing procedure or to whom the rights and obligations of such a person have been transferred.Depreciation
Allows fixed assets - or capital equipment such as cars or computer equipment - to be written off over several years. A piece of machinery bought for £330,000 in 2006 and depreciated, or written off, over three years has no value in the accounts after 2009, but has appeared as a £110,000 cost in each of the years in between. This does not reflect the actual value of the assets.Deregistration
The process by which a VAT registered business is removed from the VAT register and the VAT registration number cancelled.Derivative
A financial contract with a value linked to the expected future price movements of the asset it is linked to - such as a share or a currency.Derogation
An exemption, from or relaxation of, a rule or law, which requires an application by an individual or business wishing to take advantage of that derogation. For example, a derogation of the Nitrate Vulnerable Zone legislation raises the nitrogen farm limit to 250 kilograms for a certain number of years for eligible farms and sets out the criteria for applying for the derogation.Designated export place (DEP)
This is a customs-approved inland location where certain export procedures (full and simplified declaration procedures, low-value and statistical declarations) may be used and where all customs declaration must be made electronically to the Customs Handling of Import and Export Freight (CHIEF) system.Digital rights management
Software-based technologies aimed at protecting the copyright of data available via the internet, by enabling secure distribution and/or disabling illegal distribution of the data. Digital rights management protects intellectual property by either encrypting the data so that it can only be accessed by authorised users or marking the content with a digital watermark, or similar method, so that the content cannot be freely distributed.Digital signature
The process of adding an electronic marker to the information to validate both the content and the originator of the data. Digital signatures are easily transportable, cannot be imitated by someone else, and can be automatically time-stamped. The ability to ensure that the original signed message arrived means that the sender cannot easily refuse to accept it later. A digital signature can be used with any kind of message, whether it is encrypted or not, simply so that the receiver can be sure of the sender's identity.Direct export
Refers to goods exported directly from the UK to a non-European Union country.Direct representative
A third party who makes a customs declaration in a trader's name, on the trader's behalf.Direct trader input (DTI-CHIEF)
An arrangement under which traders can input data from their own computer terminals to the Customs Handling of Import and Export Freight system via a trade system operator.Direct trader input community (DTI community)
An arrangement where traders using direct trader input transmit data to the customs entry processing system via one of the community linked networks.Direct trader input system (DTI system)
A trade computer system that supports a network of trade users and provides human computer interface and electronic data interchange access to the Customs Handling of Import and Export Freight system. Inventory systems are usually associated with a direct trader input system.Directors
Legal executives of a company. They take management decisions in board meetings. Directors are personally responsible for delivering accounts and the annual return on time. They also ensure that the registered office address is current and attended.Directors' and officers' liability insurance
Insurance that indemnifies against any claims for compensation and legal fees for any actions on the part of the company directors or officers, which is outside of their duties, responsibilities or powers.Discharge consent
A discharge consent is a permit issued by the Environment Agency that allows you to discharge certain matter into controlled waters subject to strict conditions. In Scotland, a similar permit called an authorisation is issued by the Scottish Environment Protection Agency.Disclaimer
A written document denying legal responsibility, or a limitation of rights that might otherwise be claimed.Discounting
A means of raising money against the value of unpaid invoices. A discounter will buy invoices at a discount from their face value, hoping to make a profit on redemption.Dispatches
In the context of trade within the European Union (EU), the removal of goods from the UK and their acquisition in another EU member state by a person registered for VAT in that state.Distance selling
When a taxable person registered in one European Union (EU) member state supplies and delivers goods to a non-taxable person in another EU member state (most common in mail order).Distiller's warehouse
An excise warehouse approved by HM Revenue & Customs under Section 15 of the Alcoholic Liquor Duties Act 1979, for the storage of the spirits produced at a distillery. A limited range of operations, such as racking, can be carried out in a distiller's warehouse.Distraint
The legal process which allows HM Revenue & Customs (HMRC) to take (the legal term is "seize") a taxpayer's possessions and, if necessary, sell them to settle a debt owed to HMRC.Distributor
Overseas agent which sells for a supplier directly and maintains an inventory of the supplier's products.Dividend
A payment to shareholders as a return on their investment in the form of cash, stock, or property. Dividends are declared from operating surplus. Dividend is also a term used by a licenced insolvency practitioner to describe the distribution of assets of an insolvent estate to the creditors of the insolvent business.Documentary collection
Where you draw up a bill of exchange, which allows you to keep control of your goods and raise additional finance. An overseas bank, acting on your bank's behalf, will only release the documents necessary for your customer to take possession of goods once it formally accepts the terms of the bill. Documentary collections are typically used for exports outside the European Union.Documentary credits
Letters of credit are the most secure method of payment (other than payment in advance). Your customer arranges a letter of credit with its bank, which then pays a corresponding bank in the UK - the advising bank - once you submit all the necessary documentation.Documentary proof of origin (DPO)
An accurate and authentic 'irrevocable' letter of credit, verified by your bank, carries little credit risk. Documentary credits are typically used for exports to customers you have not sold to before, and for customers and countries that present particular credit risks.Domain name
The unique name that identifies a website, and is also used to describe the name to the right of the @ sign in an email address, eg email@businesslink.gov.uk and www.businesslink.gov.uk.Domain Name System (DNS)
The mechanism used to convert a website domain name to the unique IP address of the server it is housed on. This allows users to locate a remote server by its name, which is easier to remember than its somewhat obscure IP address that is made up of digits. You will often see the IP address displayed by your browser when you are connecting to a particular website.DOMERO
See e-DOMERO. A Plant Health Inspectorate computer system for recording, processing and reporting inspections.Drawback
Repayment of duty or other taxes paid on goods satisfying certain conditions. The most common forms of drawback relate to excise duty paid on goods which are subsequently removed from the UK (whether to another European Union (EU) member state or to a destination outside the EU) supplied as ship's or aircraft's stores or used in the manufacture of certain eligible products. Inward processing relief drawback is a procedure under which customs duty and VAT are paid on import and reclaimed when the goods are re-exported.Due diligence
The formal process of taking all reasonable steps when investigating the background of a business being bought or of another party in a major long-term contract. Used to ensure that there are no hidden details that could affect the deal.Duty
There are two main types of duty collected by HM Revenue & Customs - one is import duty, which is duty charged on goods imported into the European Union and the other is excise duty, which is a UK tax on certain types of goods, such as alcohol or tobacco.Duty and tax
Customs duty, Common Agricultural Policy charges, excise duty and VAT, as applicable.Duty of care for health and safety
Both you and anyone on your premises have a duty of care to protect their health and safety. This means that you must take reasonable precautions to avoid acts which could forseeably cause harm to people.Duty of care for waste
The duty of care is a law that requires you to take all reasonable steps to ensure that waste is managed responsibly until it is finally disposed of. If you give waste to someone else you must be sure they are authorised to take it and can transport, recycle or dispose of it safely.Duty of disclosure
Obligation placed on someone taking out insurance, to inform insurers of anything that could influence either their judgment on whether the risk is acceptable, or the terms to be offered.Duty paid terminal
An oils terminal where all of the oils in storage have borne excise duty.Duty point
The time and place where excise duty becomes payable.Duty representative
A person authorised and registered by HM Revenue & Customs to act as an agent for non-UK owners of excise goods who wish to deposit goods in a UK excise warehouse.Duty suspension
An arrangement which allows excise goods to be produced, processed, held, received and dispatched without payment of duty. The duty chargeable on the goods is held in suspense. Duty suspension ends when the goods reach a legal point, ie the 'excise duty point', at which the duty becomes due.Duty-suspended installation
A warehouse, where oils are stored in duty suspension before delivery to home use. These are normally attached to the producer's premises, or are import warehouses. These premises used to be referred to as bonded warehouses.
