Terms of delivery DDP. Delivery of goods on DDP terms

Business in transportation is a dynamically developing direction of the economy. Every year new players come to him, some of whom have a poor understanding of the work in this industry. To fix this, we offer you an article describing the terms of delivery of DDP.

Considering the tendency to a rapid expansion of the level of transportation, such information will certainly not be superfluous.

Decoding of the basic concept

In foreign literature, the terms of delivery of DDP are denoted by the term Delivered Duty Paid (... named place of destination), which translates as "delivery with payment of duty", and then indicate the destination where it is required to bring the goods.

What does it mean?

Simply put, the term means the following: the seller agrees to provide the buyer with a cargo that has passed all customs formalities (cleaning), delivering it to the destination specified by the parties. Of course, in this case, the seller bears all risks associated with the transport of goods, pays all necessary customs fees.

Thus, in this case the seller bears all responsibility for the safe arrival of the goods from the warehouse to the final buyer. Important! If the supplier for one reason or another can not pay for the license to import the product, the term "DDP delivery terms" is no longer applicable.

Some exceptions

Parties can agree that part of the costs (VAT, for example) can be paid by the party buying this product. But in this case, all the smallest details of the transaction should be reflected in the contract. Particularly considerate in this regard is to be a seller: if the documents do not specify these conditions, any court will side with the buyer, so that the terms of delivery of DDP are beneficial to the receiving party.

If the buyer assumes the risks of transporting the goods, then the term DDU should be used. Of course, all this should also be reflected in the contract of sale. This designation is used regardless of the mode of transport, but in international practice it is customary to designate delivery by sea as DES or DEQ.

Of course, we have already repeated many times about the seller's full responsibility, but this topic should be disclosed even more, since in some cases, exceptions are possible.

Customs clearance

Unlike other methods of delivery, in this case, the seller (!) At his own risk and draws up all the permits for the import of products, conducts goods through the customs of another state or his country (domestic transportation), while paying all fees and duties from Your pocket.

Contracts of carriage and insurance

In addition, it is the supplier at his own expense that enters into a contract for the supply of products. But! Unless otherwise specified in the contract, he can independently choose the destination that best meets his requirements. As for the insurance contract, there are no obligations on it.

On the distribution of costs

Among other things, DDP delivery terms - Incoterms 2010 - oblige the seller to bear all costs associated with loading / unloading the goods, as well as reimburse those costs that arise during the delivery of the goods to the customer. Forced spending associated with the crossing of the internal or state border (as well as the borders of other states in the future) also fall under this definition.

Important! Under the new requirements, the DDP-terms of delivery ("Incoterms 2010" - so-called these rules) provide for sending a notice to the buyer about the fact of the beginning of cargo transportation, and also oblige to send to the latter all the information that may be needed to carry out any activities related to Acceptance of goods.

Proof of Delivery

Please note that the seller's area of responsibility also includes the provision (at his own expense) of a diversion order and / or an ordinary document issued during transportation. These include a negotiable bill of lading, a sea waybill, waybills confirming the fact of sending goods by sea, by air or by other means of transport. If provided for in the supply contract, electronic documents certified by an electronic signature encrypted using standard cryptography facilities may be used.

About inspection and requirements to packing of the goods

With regard to the verification of the goods before sending it, the delivery under the terms of DDP in this respect is no different from that with other methods of forwarding goods. In simple terms, the seller must at his own expense and by himself check the availability of goods, their weight and other important characteristics that are important for the normal dispatch and subsequent acceptance of the goods. In addition, the supplier at his own expense provides the necessary packaging for the product, except when the rules of trade permit the export of the goods in bulk.

Of course, the package must have all the necessary markings adopted for this type of product in the whole world or in the country through which the transportation is carried out.

That's what the DDP terms of delivery are from the vendor's point of view. And now we will talk about what kind of obligations are imposed on the direct recipient of the goods (the buyer).

Main responsibilities of the buyer

First, we should make a reservation in advance that in this role, not only legal, but also an individual can act. In any case, the primary duty of the buyer is timely payment for the delivered goods.

In addition, the delivery of goods on DDP terms requires him to fully assist the seller in obtaining any necessary information for the timely and unhindered receipt of all necessary customs documents. If the delivery is carried out in accordance with all generally accepted rules and conditions specified in advance in the contract of sale, the customer is obliged (!) To accept and pay for the goods in full accordance with previously reached agreements.

If, for some reason, the buyer can not accept the goods at the point of unloading, which was previously stipulated in the contract, he is obliged to notify the seller as soon as possible. If this obligation is not met, penalties may be imposed on him.

Force Majeure

Some exceptions can only be force majeure. This term is understood as an irresistible force that prevents the parties from fulfilling their agreements stipulated in the contract (war, natural disasters and natural disasters).

But this does not save the buyer from the need to pay for the goods delivered to him or to take the already paid cargo. In addition, in order for the conditions to be validly recognized as force majeure, they should apply to the nearest department of the Chamber of Commerce of the Russian Federation for a maximum of three days and fix their appeal on postponing the fulfillment of obligations to the seller.

If the force majeure will last for more than three months, the contract can be terminated by agreement of the parties. But this again does not mean that the buyer or seller can not deliver the already paid goods or not pay for the shipment delivered.

In the event that a conflict arises on such soil, which can not be resolved by the amicable agreement of the parties, the Arbitration Court must reconcile them.

Transfer of risks

As you can guess, the main responsibility for this item is the seller. But the customer himself has certain obligations.

If the delivery of the goods was performed on time and in accordance with the other terms of the contract, in this case the buyer bears all responsibility for its further safety from the moment of transfer of the goods to him or his legal representative. In the event that the damage or shortage occurred in the event of the customer's actions, the latter is obligated to pay the penalty in full at the expense of his personal funds.

If the buyer did not inform the seller of the impossibility of accepting the goods, he must fully pay all losses incurred as a result of his actions. But! The main condition for compliance with this clause of the contract is full compliance of the cargo with the declared characteristics. In particular, the terms of delivery of DDP "Incoterms-2012" are based on this.

Simply put, the goods must be identified in the proper way. Or it is somehow differently defined as that commodity, which was the subject of a treaty between the two conflicting parties.

In addition, it is the recipient must bear all costs associated with inspection of the goods at the time of receipt. Especially it concerns those cases when such a requirement is legislatively fixed in those states where the seller exported the goods. This requirement was introduced in the terms of delivery of DDP Incoterms 2000 and since then its provisions have not changed.

Important notes

Despite all of the above, there are often legislative incidents. For example, many entrepreneurs in our country have faced a situation where a seller who is a legal entity or an individual of another state can not pay trade taxes and other charges on its behalf under the rules of our trade (Article 320 of the LC RF), despite the fact that it is required Terms of delivery DDP. This means that this state of affairs should be taken into account at the time of signing the contract, prescribing the need to pay trade fees by the buyer. This will avoid misunderstandings and legal hardship in the future.

Finally

The method of trade supply described above is especially relevant in recent years. The global industrial and economic crisis leads to the fact that sellers are compelled by all means to fight for the attention of buyers. If you do not violate trade laws, then often the only way to attract potential customers is to supply DDP, as it allows you to show maximum loyalty to the consumer.