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DDP INCOTERMS - Delivery with payment of fees

This term may be used irrespective of the chosen mode of transport and by using more than one mode of transport.
DDP-Incoterms-2010-VINCULUM- Customs clearance Vladivostok-GK-IMPORT40Factory or warehouse manufacturer or sellerDelivery from the factory or warehouse to the departure terminalPlacement of goods on the cargo terminalPlacing goods on boardState borderSea transportation to the port of dischargeAccommodation at the temporary storage at the port of arrival (unloading)Delivery of goods ready for unloading from the vehicleConsignee WarehouseSeller’s cost and responsibility area for DDPThe cost zone and the responsibility of the buyer when DDPMoment of risk transfer when DDP!

Delivered Duty Paid (Delivered Duty Paid) means that the seller delivers when the buyer is given product, cleared of the customs duties required for importation, on the arrived vehicle, ready for unloading at the named destination. 

DDP imposes maximum responsibilities on the seller. The seller bears all costs and risks associated with the delivery of goods to the destination, and is obliged to carry out customs formalities necessary not only for export, but also for import, pay any fees charged for export and import, and complete all customs formalities.

Parties are encouraged to most accurately determine the point at the agreed place of destination, as the costs and risks up to this point is the seller. Seller recommended that contracts of carriage, which accurately reflect this choice. If the seller is in his contract of carriage bears the costs of discharge at the agreed place of destination, the seller is not entitled to claim compensation from the purchaser of such costs, unless otherwise agreed by the parties.

Parties are not recommended to use DDPif the seller is not directly or indirectly able to ensure the completion of customs formalities for importation (import clearance).

If the parties wish to impose on the buyer all the risks and costs of the customs formalities for import, it is advisable to use the term DDP.

VAT or other taxesPayable on import at the seller’s expense, unless otherwise agreed in a clear form in the purchase agreement.

For the buyer DDP It is convenient because the exporter takes over the organizational aspects of the delivery and customs clearance of the goods, but the seller will still include all these costs in the cost of the goods. These conditions are very convenient for the buyer, since he knows the final price of the goods in his warehouse in advance at the conclusion stage.

Learn what you need to consider and take when choosing DDP Close the list of actions for DDP
  • clearly agree with the seller and define in the contract the place of delivery of the goods;
  • agree with the insurance company the terms of insurance, if necessary;

 

1. General obligations of the seller and the buyer under the conditions DDP

A.1.The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, the commercial invoiceinvoice, as well as any other proof of compliance of the goods with the terms of the contract of sale, which may be required under the terms of the contract.
Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure if agreed by the parties or is common.
V.1. The buyer must pay the price of the goods, as provided for in the contract of sale.
Any document referred to in paragraphs B1-B10 may be an equivalent electronic record or other procedure, if agreed by the parties or is common.

2.Licenses, permits, security controls and other formalities under the conditions DDP

A.2.If required, the seller must at his own expense and risk to obtain export and import license or other official authorization and carry out all customs formalities necessary for the exportation of the goods, their transport through any country and for the importation of goods.
V.2.If required, the buyer must provide the seller, at his request, at his risk and expense, assistance in obtaining an import license or other official authorization for the importation of goods.

3. Contracts of carriage and insurance under conditions DDP

A.3.a) Contract of carriage
The seller must at his own expense for the carriage of the goods to the named destination or to the agreed point (if any) at the agreed destination. If a specific point is not agreed or can not be determined on the basis of practice, the seller may select the most suitable for its purpose clause in the agreed place of destination.
b) Contract of insurance
The seller no duty to the buyer under a contract of insurance. However, the seller must provide the buyer, at his request, at his risk and expense (if any costs), the information necessary for the buyer of insurance.
V.3.a) Contract of carriage
The buyer has no obligation to the seller to conclude a contract of carriage.
b) Contract of insurance
The buyer has no obligation to the seller to conclude a contract of insurance. However, the buyer must provide the seller, at his request, the information necessary for the conclusion of the insurance contract.

4. Delivery and acceptance of goods under conditions DDP

A.4.The seller must deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point, if any, at the named place of destination on the date or period.
V.4.The buyer must take delivery of the goods when they have been delivered in accordance with paragraph A4.

5. Transfer of risks under conditions DDP

A.5.Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5.
V.5.The buyer shall bear all loss or damage risks
since it was delivered in accordance with paragraph A4.
If:
a) the buyer does not fulfill his duties in accordance with paragraph B2, it bears all the related loss or damage .tovara risks; or
b) the buyer does not give notice in accordance with paragraph B7, he shall bear all risks of loss or damage to the goods from the agreed date or the date on which the agreed delivery period has expired,
provided that the goods were explicitly individualized as a commodity, which is the subject of the contract.

6 Allocation of costs under conditions DDP

A.6.The seller must pay:
  • in addition to the costs stipulated in paragraph A3 a), all expenses related to the goods until delivery in accordance with paragraph A4, except for expenses paid by the buyer, as provided for in paragraph B6;
  • any costs of unloading at the destination, which are attributed under the contract of carriage to the seller;
  • if necessary, the costs associated with the customs formalities required for export and import, with the payment of all duties, taxes and fees charged for the export and import of goods, as well as the cost of transporting goods through any country prior to its delivery, as provided for paragraph A4.
V.6.The buyer must pay:
  • all expenses related to the goods from the moment of delivery, as provided in paragraph А4;
  • all unloading expenses necessary for accepting the goods from the arriving means of transport at the named place of destination, if under the contract of carriage such expenses are not borne by the seller;
  • any additional expenses incurred as a result of his failure to fulfill his duties in accordance with paragraph 2 or failure to submit a notification in accordance with paragraph 7, provided that the goods were explicitly individualized as goods subject to the contract.

7.Notification to buyer and seller under conditions DDP

A.7.The seller must provide the buyer proper notice, allowing the buyer to take steps normally required in order that he may carry out acceptance of the goods.
V.7.Because the seller have the right to set a date within the agreed period and / or the point of taking delivery at the named place of destination, he must account to the seller due notice thereof.

8.Documentary proof of delivery under conditions DDP

A.8.The seller must at his own expense provide the buyer with a document that allows the buyer to take delivery of the goods, as provided for in paragraphs A4 / B4.
V.8.The buyer must accept the proof of delivery, issued in accordance with paragraph A8.

9.Checking, packaging, labeling and inspection of goods under conditions DDP

A.9.The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4, as well as the costs of inspection of goods before shipment, which is prescribed by the authorities of the country of export and import.
The seller must, at his own expense, ensure the packing of the goods, unless it is customary in the industry to ship the goods specified in the contract in unpacked packaging. The seller may pack the goods in such a way as is necessary for his transportation, unless the buyer informs the seller about the specific packaging requirements before entering into the contract. Marking packaged goods must be properly implemented.
V.9.The buyer is not obliged to reimburse the seller incurred costs of mandatory inspection of goods before shipment, which is carried out by order of the authorities of the country of export and import.

10. Assistance in obtaining information and related costs under the conditions DDP

A.10.If need be, the seller is obliged to provide the purchaser or to assist him in obtaining, at the buyer's request, risk and expense, documents and information, including important safety information, which may require the purchaser to transport the goods to the final destination (if required ) - the destination of the title.
The seller is obliged to compensate the buyer for all costs and charges incurred by the buyer in obtaining or providing assistance in obtaining documents and information as provided for in paragraph B10.
V.10.The buyer must notify the seller in a timely manner the requirements with regard to safety information, so that the seller could act in accordance with paragraph A10.
The buyer must reimburse the seller incurred by him costs and charges for providing or rendering assistance in obtaining documents and information as provided for in paragraph A10.
If required, the buyer is obliged to provide the seller or facilitate delivery of the seller, at the request of the seller, at his risk and expense, any documents and information, including important safety information, which may require the seller to transport, export and import of goods and for their transportation through any country.
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EXW FCA FAS FOB CFR CIF CPT CIP DAT DAP DDP