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DDP
Sources:International Trade Law, Time:2012-07-11 16:20, Click:, Comment
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DELIVERED DUTY PAID
DDP (insert named place of destination) Incoterms� 2010
GUIDANCE NOTE
This rule may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed. “Delivered Duty Paid” means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving means of transport ready for unloading at the named place of destination. The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.
DDP represents the maximum obligation for the seller. The parties are well advised to specify as clearly as possible the point within the agreed place of destination, as the costs and risks to that point are for the account of the seller. The seller is advised to procure contracts of carriage that match this choice precisely. If the seller incurs costs under its contract of carriage related to unloading at the place of destination, the seller is not entitled to recover such costs from the buyer unless otherwise agreed between the parties.
The parties are well advised not to use DDP if the seller is unable directly or indirectly to obtain import clearance.
If the parties wish the buyer to bear all risks and costs of import clearance, the DAP rule should be used.
Any VAT or other taxes payable upon import are for the seller’s account unless expressly agreed otherwise in the sales contract.

A THE SELLER’ OBLIGATIONS
A1 General obligations of the seller
The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
Any document referred to in A1-A10 may be an equivalent electronic record or procedure if agreed between the parties or customary.

A2 Licences, authorizations, security clearances and other formalities
Where applicable, the seller must obtain, at its own risk and expense, any export and import licence and other official authorization and carry out all customs formalities necessary for
the export of the goods, for their transport through any country and for their import.

A3 Contracts of carriage and insurance
a) Contract of carriage
The seller must contract at its own expense for the carriage of the goods to the named place of destination or to the agreed point, if any, at the named place of destination. If a specific point is not agreed or is not determined by practice, the seller may select the point at the named place of destination that best suits its purpose.
b) Contract of insurance
The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer’s request, risk, and expense (if any), with information that the buyer needs for obtaining insurance.

A4 Delivery
The seller must deliver the goods by placing them at the disposal of the buyer on the arriving means of transport ready for unloading at the agreed point, if any, at the named place of destination on the agreed date or within the agreed period.

B THE BUYER’ OBLIGATIONS
B1 General obligations of the buyer
The buyer must pay the price of the goods as provided in the contract of sale.
Any document referred to in B1-B10 may be an equivalent electronic record or procedure if agreed between the parties or customary.
B2 Licences, authorizations, security clearances and other formalities Where applicable, the buyer must provide assistance to the seller, at the seller’s request, risk and expense, in obtaining any import licence or other official authorization for the import of the goods.

B3 Contracts of carriage and insurance
a) Contract of carriage
The buyer has no obligation to the seller to make a contract of carriage.
b) Contract of insurance
The buyer has no obligation to the seller to make a contract of insurance. However, the buyer must provide the seller, upon request, with the necessary information for obtaining insurance.

B4 Taking delivery
The buyer must take delivery of the goods when they have been delivered as envisaged in A4.

A5 Transfer of risks
The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A4, with the exception of loss or damage in the circumstances described in B5.
A6 Allocation of costs The seller must pay
a) in addition to costs resulting from A3 a), all costs relating to the goods until they have been delivered in accordance with A4, other than those payable by the buyer as envisaged in B6;
b) any charges for unloading at the place of destination that were
for the seller’s account under the contract of carriage; and
c) where applicable, the costs of customs formalities necessary for export and import as well as all duties, taxes and other charges payable upon export and import of the goods, and the costs for their transport through any country prior to delivery in accordance with A4.

A7 Notices to the buyer
The seller must give the buyer any notice needed in order to allow the buyer to take measures that are normally necessary to enable the buyer to take delivery of the goods.
A8 Delivery document The seller must provide the buyer, at the seller’s expense, with a document enabling the buyer to take delivery of the goods as envisaged in A4/B4.

B5 Transfer of risks
The buyer bears all risks of loss of or damage to the goods from the time they have been delivered as envisaged in A4.
If
a) the buyer fails to fulfil its obligations in accordance with B2, then it bears all resulting risks of loss of or damage to the goods;
or
b) the buyer fails to give notice in accordance with B7, then it bears 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 that the goods have been clearly identified as the contract goods.

B6 Allocation of costs
The buyer must pay
a) all costs relating to the goods from the time they have been delivered as envisaged in A4;
b) all costs of unloading necessary to take delivery of the goods from the arriving means of transport at the named place of destination, unless such costs were for the seller’s account under
the contract of carriage; and
c) any additional costs incurred if it fails to fulfil its obligations in accordance with B2 or to give notice in accordance with B7, provided that the goods have been clearly identified as the contract goods.

B7 Notices to the seller
The buyer must, whenever it is entitled to determine the time within an agreed period and/or the point of taking delivery within the named place of destination, give the seller sufficient notice
thereof.

B8 Proof of delivery
The buyer must accept the proof of delivery provided as envisaged in A8.

A9 Checking

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