INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS
DDP – Delivered Duty Paid (named place of destination)
Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm “Free In Store (FIS)”. This term places the maximum obligations on the seller and minimum obligations on the buyer. No risk or responsibility is transferred to the buyer until delivery of the goods at the named place of destination.
The most important consideration for DDP terms is that the seller is responsible for clearing the goods through customs in the buyer’s country, including both paying the duties and taxes, and obtaining the necessary authorizations and registrations from the authorities in that country. Unless the rules and regulations in the buyer’s country are very well understood, DDP terms can be a very big risk both in terms of delays and in unforeseen extra costs, and should be used with caution.
Who covers the logistics charges?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller
Incoterms 2010
- CFR — Cost and Freight
- CIF — Cost, Insurance and Freight
- CIP — Carriage and Insurance Paid Тo
- CPT — Carriage Paid To
- DAP — Delivered at Place
- DDP — Delivered Duty Paid
- DAT — Delivered at Terminal
- EXW — EX Works
- FAS — Free Alongside Ship
- FCA — Free Carrier
- FOB — Free On Board
-
