DDP transportations

DDP Incoterms 2010 — «Delivered Duty Paid» — delivery of customs-cleared goods to a designated destination. Insurance, transport, customs and other risks when delivering the goods to a destination shall be borne by the seller.

The DDP term can be used while delivering the goods by any mode of transport, including combined transportations. The word «carrier» means any person, who in a contract of carriage, undertakes to perform or to arrange transportation of goods by railway, motor, air, marine and inland water transport, or a combination of such modes of transport.

DDP delivery terms cannot be used if the seller directly or indirectly cannot ensure the fulfillment of import customs procedures for import of the goods. If the parties agree to exclude from the seller’s obligations some of the costs payable upon import (such as a value added tax — VAT), this should be made clearly in the sales contract.

While the EXW term represents minimum obligations for the seller, the term of DDP delivery basis represents the maximum obligations for the seller. If the parties wish the buyer to bear all risks and costs of import customs formalities for import of the goods, it is expedient to use the DAP term.