"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 to 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
No obligation.
A.4. Delivery
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 prior to delivery in accordance with A.4.
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, an 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