| DDP Delivered
Duty Paid " Delivered Duty
Paid" means that the seller delivers the goods to the buyer, cleared for import, and
not unloaded from any arriving means of transport at the named place of destination. The
seller has to bear all the costs and risks involved in bringing the goods thereto
including, here applicable, any "duty" (which term includes the responsibility
for and the risk of the carrying out of customs formalities and the payment of
formalities, customs duties, taxes and other charges) for import in the country of
destination.
Whilst
the EXW term represents the minimum obligation for the seller DDP represents the maximum
obligation.
This term
should not be used if the seller is unable directly or indirectly to obtain the import
licence.
However,
if the parties wish to exclude from the seller’s obligations some of the costs
payable upon import of the goods (such as value-added tax: VAT), this should be made clear
by adding explicit wording to this effect in the contract of sale.
If the
parties wish the buyer to bear all risks and costs of the import, the DDU term should be
used.
This term
may be used irrespective of the mode of transport but when delivery is to take place in
the port of destination on board the vessel or on the quay (wharf), the DES or DEQ terms
should be used. |
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| A1 |
Provision of the goods in
conformity with the contract |
B1 |
Payment of the price |
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The seller must provide the
goods and the commercial invoice, or its equivalent electronic message, in conformity with
the contract of sale and any other evidence of conformity, which may be required by the
contract. |
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The buyer must pay the price as
provided in the contract of sale. |
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| A2 |
Licences, authorisations and
formalities |
B2 |
Licences, authorisations and
formalities |
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The seller must obtain at his
own risk and expense any export licence or other official authorisation or other documents
and carry out, where applicable, all customs formalities for the export of the goods, and
for their transit through any country. |
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The buyer must obtain at his
own risk and expense any import licence or official authorisation or other documents and
carry out, where applicable, all customs formalities necessary for the import of the
goods. |
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| A3 |
Contracts of carriage and
insurance |
B3 |
Contracts of carriage and
insurance |
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- contract of
carriage
The
seller must contract at his own expense for the carriage of the gods to the named quay
(wharf) at the named port of destination. If a specific quay (wharf) is not agreed or is
not determined by practice, the seller may select the quay (wharf) at the named port of
destination which best suits his purpose.
- Contract of
insurance.
No
obligation. |
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- contract of
carriage
No
obligation.
- Contract of
insurance.
No
obligation. |
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| A4 |
Delivery |
B4 |
Taking delivery |
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The seller must place the goods
at the disposal of the buyer on the quay (wharf) referred to in A3 a), on the date or
within the agreed period. |
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The buyer must take delivery of
the goods when the have been delivered in accordance with A4. |
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| A5 |
Transfer of risks |
B5 |
Transfer of risks |
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The seller must, subject to the
provisions of B5, bear all risks of loss of or damage to the gods until such time as they
have been delivered in accordance with A4. n |
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The buyer must bear all risks
of loss of or damage to the goods from the time they have been delivered in accordance
with A4. The buyer must, should he fail
to give notice in accordance with B7, bear all risks of loss of or damage to the goods
from the agreed date or the expiry date of the agreed period for delivery provided,
however, that the goods have been duly appropriated to the contract, that is to say,
clearly set aside or otherwise identified as the contract goods. |
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| A6 |
Division of costs |
B6 |
Division of costs |
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The seller must, subject to the
provisions of B6, pay In addition to costs resulting
from A3 a), all costs relating to the goods until such time as they are delivered on the
quay (wharf) in accordance with A4, and
Where
applicable; the costs of customs formalities necessary for export as well as all duties,
taxes and other charges payable upon export of the goods and for their transit through any
country prior to delivery. |
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The buyer must pay All costs relating
to the goods from the time they have been delivered in accordance whit A4, including the
expenses of discharge operations necessary to take delivery of the goods from the vessel;
and
All
additional costs incurred if he fails to take delivery of the goods when they have been
placed at his disposal in accordance with A4, or to give notice in accordance with B7,
provided, however, that the goods have been appropriated t the contract, that is to say,
clearly set aside or otherwise identified as the contract goods.
Where
applicable, the costs of customs formalities as well as all duties, taxes and other
charges payable upon import of the goods. |
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| A7 |
Notice to the buyer |
B7 |
Notice to the buyer |
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The seller must give the buyer
sufficient notice of the estimated time of arrival of the nominated vessel in accordance
with A4, as well as any other notice required in order to allow the buyer to take measures
which are normally necessary to enable him to take delivery of the goods. |
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The buyer must, whenever he is
entitled to determine the time within an agreed period and/or the point of taking delivery
in the named port of destination, give the seller sufficient notice thereof. |
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| A8 |
Proof of delivery, transport
document or equivalent electronic message |
B8 |
Proof of delivery, transport
document or equivalent electronic message |
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The seller must provide the
buyer at the seller’s expense with the delivery order and/or the usual transport
document (for example a negotiable bill of lading, a non-negotiable sea waybill, an inland
waterway document or a multimodal transport document) to enable him to take the goods and
remove them from the quay (wharf). Where the seller and the buyer
have agreed to communicate electronically, the document referred to in the preceding
paragraph may be replaced by an equivalent electronic data interchange (EDI) message |
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The buyer must accept the
delivery order or the transport document in accordance with A8. |
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| A9 |
Checking – packaging
– marking |
B9 |
Checking – packaging
– marking |
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The seller must pay the costs
of those checking operations (such as checking quality, measuring, weighing, counting)
which are necessary for the purpose of delivering the goods in accordance with A4. The seller must
provide at his own expense packaging (unless it is usual for the particular trade to
deliver the goods of the contract description unpacked) which is required for the delivery
of the goods. Packaging is to be marked appropriately |
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The buyer must pay the costs of
any pre-shipment inspection except when such inspection is mandated by the authorities of
the country of export. |
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| A10 |
Other obligations |
B10 |
Other obligations |
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The seller must render the
buyer at the latter’s request, risk and expense, every assistance in obtaining any
documents or equivalent electronic messages (other than those mentioned in A8) issued or
transmitted in the country of dispatch and/or of origin which the buyer may require for
the import of the goods. The seller must provide the
buyer, upon request, with the necessary information for procuring insurance. |
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The buyer must pay all costs
and charges incurred in obtaining the documents or equivalent electronic messages
mentioned in A10 and reimburse those incurred by the seller in rendering his assistance in
accordance therewith. |
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