Welcome to Trade Terms Tuesday! Each Tuesday, we will share three trade-related terms. In order to reach out to our diverse readership, we will try to provide one for exports, one for imports and one for logistics/transportation. This week, we continue with the D’s.
Demurrage
Sometimes used interchangeably with “detention,” demurrage refers to the extra charges incurred because of the excess time taken for loading or unloading cargo. These charges are used to help offset the costs incurred because of the additional time used to unload the container when the container could have been used for other purposes.
Dual Invoicing
A dual invoicing system results in submission of one invoice for CBP entry purposes reporting lower prices than those actually paid for imported merchandise. This allows the importer to understate the value and under pay the duties. Another invoice containing the higher amount is submitted to the importer for payment.
Demurrage
Sometimes used interchangeably with “detention,” demurrage refers to the extra charges incurred because of the excess time taken for loading or unloading cargo. These charges are used to help offset the costs incurred because of the additional time used to unload the container when the container could have been used for other purposes.
Dual Invoicing
A dual invoicing system results in submission of one invoice for CBP entry purposes reporting lower prices than those actually paid for imported merchandise. This allows the importer to understate the value and under pay the duties. Another invoice containing the higher amount is submitted to the importer for payment.
Dual Use
Items that have both commercial and military or proliferation applications are classified as dual use. An item that satisfies more than one purpose at any given time could be considered dual use. For example a global positioning system that serves military purposes can also be utilized to benefit non-military commercial interests. BIS regulates dual use items.
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