1. Is the DDP Incoterms useful in all over the world?

– In some countries only the importer companies can clear the goods for import. In such countries freight forwarders can not do custom clearance. The seller to this countries will face many problems for custom clearance under DDP Incoterms. It is recommended to use the DAP Incoterms term instead.

2. Which party is responsible for unloading the goods from the means of transport under DDP Incoterms?

– The buyer is only responsible for unloading the goods from the arriving means of transport at the named place of destination. The seller arrange the entire shipment and deliver the goods ready for unloading to the buyer.

3. Which costs are advisable to be excluded from the seller account under DDP incoterms?

– It may be advisable to exclude the payment of any charges relating to the “internal” fiscal system in the country of import (such as VAT levied upon import) from the seller’s obligation to pay. The charges intended to be excluded should then be identified in conjunction with the DDP term in the contract of sale, for example, by using a phrase such as “DDP VAT unpaid”.

4. What are the consequences of buyer’s failure to give notice?

– While the seller under EXW and all D-terms can transfer the risk by his own act of placing the goods at the buyer’s disposal, he may be prevented from doing so by the buyer’s failure to give notice.
– The buyer must give the seller sufficient notice about the time within an agreed period and/or the point of taking delivery within the named place of destination.
– The failure to perform these tasks results in a premature passing of the risk: it is not acceptable that the buyer should be able to delay the delivery and the passing of the risk longer than contemplated when the contract of sale was made. Therefore, his failure to notify will cause the risk to pass “from the agreed date or the expiry date of the agreed period for delivery”

5. What is the difference between importing under DDP Incoterms or domestic sourcing?

– When you get a quotation based on DDP term you can find the total cost of a product from the factory floor to your door. Accordingly you can evaluate whether to source domestically or import.

To read the full obligation of the seller and the buyer in DDP Incoterms read the book “ICC Guide to Incoterms 2010”

Other useful links:
Free On Board (FOB) Incoterms
Free Carrier (FCA) Incoterms
Ex Works (EXW) Incoterms
CPT Incoterms (Carriage Paid To)
CIP Incoterms (Carriage and Insurance Paid To)
CFR Incoterms (Cost and Freight)
CIF Incoterms (Cost, Insurance and Freight)
FAS Incoterms (Free Alongside Ship)
DAT Incoterms (Delivered At Terminal)
Incoterms: Shipping Guide Every Trader Must Know

نوشته 5 Essential Notes about: DDP Incoterms (Delivered Duty Paid) اولین بار در Shipup Magazine. پدیدار شد.

1. Which party must arrange the carriage under DAT Incoterms?

– The seller must contract for the carriage up to the named terminal or agreed place of destination. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

2. Which party is responsible for unloading the goods at the named place of destination under DAT Incoterms?

– The seller is responsible for unloading the goods at the named terminal or agreed place of destination. After unloading, all the risks and costs transfers to the buyer account.

3. When it is recommended to use DAT Incoterms?

– When the parties are stranger and don’t have any agent in other country, DAT Incoterms are recommended. It is mainly because that each party arrange the custom formalities in his own country. The seller also contract for the carriage to send the goods to the buyer.

4. Where is the place for transferring the risks and costs from the seller to the buyer?

– The risk of loss of or damage to the goods is transferred from the seller to the buyer when the seller has fulfilled his delivery obligation as explained in above questions.

5. When should we use other D terms instead of DAT incoterms?

– If the parties intend the seller to bear the risks and costs involved in transporting and handling the goods from the terminal to another place, then the DAP or DDP rules should be used.

To read the full obligation of the seller and the buyer in DAT Incoterms read the book “ICC Guide to Incoterms 2010”

Other useful links:
Free On Board (FOB) Incoterms
Free Carrier (FCA) Incoterms
Ex Works (EXW) Incoterms
CPT Incoterms (Carriage Paid To)
CIP Incoterms (Carriage and Insurance Paid To)
CFR Incoterms (Cost and Freight)
CIF Incoterms (Cost, Insurance and Freight)
FAS Incoterms (Free Alongside Ship)
Incoterms: Shipping Guide Every Trader Must Know

نوشته 5 Essential Notes about: DAT Incoterms (Delivered At Terminal) اولین بار در Shipup Magazine. پدیدار شد.

If you are engaged with foreign sale or purchase, you need to dive deep into the understanding of Incoterms. Incoterms are important in sales contract as they determine the responsibility and liability of shipment. How far the seller is responsible for the shipment and When and Where this responsibility is transferred to the buyer.

The major factors you have to be cautious of in each term are Cost and Risk. When we talk the liability, we are talking about the risk and cost. The place at which the liability is transferred is the point from there onward the buyer is responsible for any cost and risk of the shipment.

When we choose an Incoterms, we choose below items:

• How far along the shipment process we accept the Risk and Cost associated with the shipment?
• When and Where the Risk of the shipment will be transferred to the buyer?
• When and Where the buyer must accept the Cost of the shipment?

The main and frequently used terms are FOB(Free On Board) and EXW(Ex Work). But there are some other terms that might be useful. We will completely explain them in next posts under this category. In the rest of this post we have a few important notes you might find helpful.

Incoterms do not talk about:

• Payment term and ownership of the goods
• Contractual obligations and breach of contract
• Details of packing, stuffing, lashing and transporting of the goods
• …

You have to consider above and other important matters in your sale contract.

Incoterms List:

For Any Mode or Modes of Transport:

• EXW: Ex Work
• FCA: Free Carrier
• CPT: Carriage Paid To
• CIP: Carriage and Insurance Paid To
• DAT: Delivered at Terminal
• DAP: Delivered at Place
• DDP: Delivered Duty Paid

For Sea and Inland Waterway Transport:

• FAS: Free Alongside Ship
• FOB: Free On Board
• CFR: Cost and Freight
• CIF: Cost, Insurance and Freight

For any special question about the Incoterms please contact us or use our live chat at the right bottom of Shipup main pages. In order to find information about the publisher of Incoterms visit ICC(International Chamber of Commerce) website.

نوشته Incoterms : Shipping Guide Every Trader Must Know اولین بار در Shipup Magazine. پدیدار شد.