“Delivered duty paid” means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. Whilst the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation.
This term should not be used if the seller is unable directly or indirectly lo obtain the import licence.
If the parties wish the buyer to clear the goods for importation and to pay the duty, the term DDU should be used.
If the parties wish to exclude from the seller’s obligations some of the costs payable upon importation of the goods (such as value added tax(VAT)), this should be made clear by adding words to this effect: “Delivered duty paid, VAT unpaid … (named place of destination)”.
This term may be used irrespective of the mode of transport.
A. The seller must
A.1. Provision of the goods in conformity with the contract
Provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A.2. Licences, authorisations and formalities
Obtain at his own risk and expense any export and import licence and other official authorisation and carry out all customs formalities for the exportation and importation of the goods and, where necessary. for their transit through another country.
A.3. Contract of carriage and insurance
a) Contract of carriage
Contract at his own expense for the carriage of the goods by a usual route and in a customary manner to the agreed point at the named place of destination. If a point is not agreed or is not determined by practice, the seller may select the point at the named place of destination which best suits his purpose.
b) Contract of insurance
Place the goods at the disposal of the buyer in accordance with A.3. on the date or within the period stipulated.
A.5. Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A.4.
A.6. Division of costs
Subject to the provisions of B.6.
- in addition to costs resulting from A.3.a), pay all costs relating to the goods until such time as they have been delivered in accordance with A.4.;
- pay the costs of customs formalities as well as all duties, taxes and other official charges payable upon exportation and importation of the goods, unless otherwise agreed and, where necessary, their transit through another country.
A.7. Notice to the buyer
Give the buyer sufficient notice of the dispatch of the goods as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
A.8. Proof of delivery transport document or equivalent electronic message
Provide the buyer at the seller’s expense with the delivery order and/or the usual transport document (for example, a negotiable bill of lading, a non-negotiable sea waybill an inland waterway document, and air waybill, a railway consignment note a road consignment note, or a multimodal transport document) which the buyer may require to take the goods.
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange(EDI) message.
A.9. Checking -packaging-marking
Pay the costs of those checking operations (such as checking quality, measuring weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A.4.
Provide at his own expense packaging (unless it is usual for the particular trade to deliver the goods of the contract description unpacked) which is required for the delivery of the goods. Packaging is to be marked appropriately.
A.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in B.10. and reimburse those incurred by the buyer in rendering his assistance therewith.
B. The buyer must
B.1. Payment of the price
Pay the price as provided in the contract of sale.
B.2. Licences, authorisations and formalities
Render the seller at the latter’s request, risk and expense every assistance in obtaining any import licence and other official authorisation necessary for the importation of the goods.
B.3. Contract of carriage
B.4. Taking delivery
Take delivery of the goods as soon as they have been placed at his disposal in accordance with A.4.
B.5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have been placed at his disposal in accordance with A.4., provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Should he fail to give notice in accordance with B.7., bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period stipulated for delivery.
B.6. Division of costs
Pay all costs relating to the goods from the time they have been placed at his disposal in accordance with A.4., provided, however, that the goods have been appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Should he fail to take delivery of the goods when they have been placed at his disposal in accordance with A.4., or to give notice in accordance with B.7., bear all additionall costs incurred thereby.
B.7. Notice to the seller
Whenever he is entitled to determine the time within a stipulated period and/or the place of taking delivery, give the seller sufficient notice thereof.
B.8. Proof of delivery transport document or equivalent electronic message
Accept the appropriate delivery order or transport document in accordance with A.8.
B.9. Inspection of goods
Pay, unless otherwise agreed, the costs of pre-shipment inspection except when mandated by the authorities of the country of exportation.
B.10. Other obligations
Render the seller, at his request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages issued or transmitted in the country of importation which the seller may require for the purpose of placing the goods at the disposal of the buyer in accordance with these rule.