Terms of delivery DDP.

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Business for transport - dynamically developing direction of the economy.Every year it comes more and more new players, some of whom have little idea about working in this industry.To fix this, we bring to your attention an article that describes the terms of delivery DDP.

Given the trend towards rapid expansion of the level of traffic, this information probably will not be superfluous.

Explanation of the main concepts

In foreign literature, terms of delivery designated by the term DDP Delivered Duty Paid (... named place of destination), which translates as "delivery duty paid", and then point to the destination where you want to bring the goods.

What does it mean?

Simply put, the term means: the seller agrees to make available to the buyer of the goods has passed all customs formalities (cleaning), bringing it to the parties agreed destination.Of course, in this case the seller shall bear all risks associated with the transportation of goods, pay the necessary customs duties.

Thus, in this case, the seller is solely responsible for the safe arrival of the goods from the warehouse to the end customer.Important!If a supplier for one reason or another can not pay for a license to import products, the term "delivery conditions DDP» apply already unacceptable.

Some exceptions

parties may agree that part of the costs (VAT, for example) may be paid by the party that buys the product.But in this case all the fine details of the deal should be reflected in the contract.Especially careful in this regard need to be a seller if the documents are not prescribed these conditions, any court would side with the buyer, so the delivery conditions DDP beneficial behalf of the host.

If the buyer takes on the risks of transporting the goods, you should use the term DDU.Of course, all this should also be reflected in the sales contract.Use this designation, regardless of the mode of transport but in international practice to denote the delivery of maritime transport as DES or DEQ.

Of course, we have often repeated to the utmost responsibility of the seller, but this topic is to reveal even more, because in some cases there may be exceptions.

Customs clearance

Unlike other methods of delivery, in which case the seller itself (!) At your peril draws all the permits for the import of products, carries cargo through customs of another state or their country (domestic), while payingthat all fees and charges out of pocket.

Contracts of carriage and insurance

In addition, it is the supplier of your account enters into a contract for the supply of products.But!Unless otherwise separately agreed in the contract, he can choose the destination that best meets his requirements.With regard to the insurance contract, then for him there is no obligation.

cost-sharing

Among other things, DDP terms of delivery - "Incoterms-2010" - oblige the seller to bear all costs associated with the loading / unloading of goods, and to reimburse those expenses that arise in the course of delivery to the customer.Forced to costs associated with crossing internal frontiers (and the borders of other states in the future) also fall under this definition.

Important!Under the new requirements, DDP-delivery terms ("Incoterms-2010" - the so-called the Rules) provide for sending the notice to the buyer about the beginning of the transport of cargo, and also undertake to send the latter all the information that may be required for any activities related to theacceptance of the goods.

Proof of delivery

Note that the zone of responsibility of the seller is also included to provide (at your expense) with the delivery order and / or usual documents drawn transportation.Among these include negotiable bill of lading, sea waybill, invoices, confirming the dispatch of the goods by sea, air or other mode of transport.If it is provided for in the supply agreement, allowed the use of electronic documents, certified electronic signature, encrypted using standard cryptography.About

verification and requirements for product packaging

As for checking the goods before sending, delivery on DDP terms in this respect is no different from that in other methods of delivery of goods.Simply put, the seller must at his own expense and on their own to check the availability of goods, weight, and other important characteristics that are important for normal shipment and subsequent acceptance of the goods.In addition, the supplier at its own expense provide the necessary packaging for the product except in cases where trade rules are allowed to export the bulk cargo.

course, on the packaging must have the necessary markings adopted for this type of product worldwide or in the country on whose territory the transport.

That's what DDP-delivery conditions from the perspective of the seller.And now we will talk about what kind of obligations are imposed on the direct recipient of the goods (the buyer).

main responsibility of the buyer

Firstly, you should make a reservation in advance that this role can be not only a legal, but also individual.In any case, the main responsibility of the buyer is a timely payment for goods delivered.

In addition, delivery of goods on DDP requires him all possible assistance to the seller in obtaining any necessary information for the timely and unimpeded receipt of all the necessary customs documents.If the delivery is made in accordance with generally accepted by all the terms and conditions stipulated in advance and prescribed in the contract of sale, the customer is obliged (!) To accept and pay for the goods in full compliance with previous agreements.

If for some reason the buyer can not accept the goods at the point of discharge, which was previously stipulated in the contract, it shall promptly notify the Seller.If this obligation is not fulfilled, in relation to him may apply penalties.

Force Majeure

Some exception can only be a force majeure.It is defined as force majeure, which prevent the parties to fulfill their agreements prescribed in the contract (war, natural disasters, and natural disasters).

But this does not relieve the buyer from having to pay for goods delivered to him or take already paid for the goods.In addition, the conditions were really recognized force majeure, it is for a maximum of three days should contact the nearest branch of the Chamber of Commerce of the Russian Federation and to fix it its appeal for a stay of execution of obligations to the seller.

If an irresistible force will operate for more than three months, the contract may be terminated by mutual agreement.But this, again, does not mean that the buyer or seller can not deliver the goods already paid or not paid delivered consignment.

In the case where such a conflict arises the soil, which can not be resolved by amicable agreement between the parties, to reconcile them must Arbitration Court.

Transfer of risks

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

If the delivery of goods was done on time and in accordance with the other terms of the contract, in which case the buyer bears the full responsibility for his future safety from the transfer of the goods to him or his legal representative.In case of damage or loss in the event of any action of the customer, the latter is obliged to pay a penalty at the expense of their personal funds.

If the buyer does not inform the seller of the impossibility of acceptance of the goods, he must fully pay all resulting from his actions losses.But!The main condition for compliance with this paragraph of the contract is full compliance with the stated characteristics of the goods.In particular, it is based on the delivery conditions DDP "Incoterms 2012".

Simply put, the goods must be identified in a proper way.Or, otherwise defined as the product that was the subject of the contract and the two conflicting parties.

In addition, the recipient is required to pay all costs associated with the inspection of goods at the time of receipt.This is especially true in cases where such a requirement enshrined in law in those states where the seller has exported the goods.This requirement was introduced back in terms of delivery DDP "Incoterms 2000" and since then has not changed its position.

Important

Despite all the above, the legal incidents are not uncommon.For many entrepreneurs in our country faced with a situation where the seller is a legal or natural person of another state, according to the rules of our trade can not pay sales taxes and other fees on its behalf (Article 320 of the Labour Code), even though the requireddelivery conditions DDP.This means that such things should be taken into account even at the time of conclusion of the contract, prescribing the need to pay sales taxes buyer.This will avoid confusion and litigation burdens in the future.

In conclusion

method described above is particularly relevant supply trade in recent years.World industrial and economic crisis led to the fact that the sellers have all the means to fight for the attention of buyers.If you do not violate trade laws, it is often the only way to attract potential customers is the delivery DDP, as it allows you to exercise the utmost loyalty to the consumer.