DDP delivery
DDP Delivered Duty Paid (delivery with payment of duty) is an international term defined in Incoterms 2020. This is a commonly used delivery term in foreign currency transactions. The DDP term places the main burden of delivery on the seller.
The seller is also responsible for customs clearance of the transported goods and equipment in addition to arranging and executing transportation, as well as taking on the financial risks associated with it in case of damage to the cargo. Thus, delivery on DDP terms is the most risk-free form of delivery for the buyer.
The seller assumes all risks and maximum responsibility for the safe and timely delivery of the cleared goods, thereby minimising the buyer’s obligations.
WR Group will deliver goods to any country in the world on DDP (Delivered Duty Paid) terms.
As part of the delivery on DDP terms, WR Group assumes all costs and risks associated with the transportation of goods to the destination, including responsibility for customs clearance and payment of customs duties, taxes and other fees incurred when importing goods and equipment into the destination country.
WR Group assumes the obligations of the seller within the scope of worldwide DDP deliveries and guarantees the safe and timely delivery of goods and equipment, cleared through customs, to the agreed destination.
Obligations of the seller
Obligations of the buyer
A.1. Presentation of goods in accordance with the contract
B.1. Payment of the price
The seller is obliged, in accordance with the sales contract, to provide the buyer with the goods, commercial invoice or an equivalent e-mail, and any other proof of compliance that may be required under the terms of the sales contract
The buyer is obliged to pay the price of the goods specified in the purchase contract
A.2. Licenses, certificates and other formalities
B.2. Licenses, certificates and other formalities
A) The seller must contract at his own expense for the carriage of the goods to the named place of destination. If a specific point is not agreed or is not determined by the practice of this kind of delivery, the seller can choose the most suitable point for him at the named place of destination.
B) The seller has no obligation under the contract of carriage insurance
A) The buyer has no obligation under the contract of carriage
B) The buyer has no obligation under the contract of carriage insurance
A.3. Carriage and insurance contracts
B.3. Carriage and insurance contracts
A) The seller must contract at his own expense for the carriage of the goods to the named place of destination. If a specific point is not agreed or is not determined by the practice of this kind of delivery, the seller can choose the most suitable point for him at the named place of destination.
B) The seller has no obligation under the contract of carriage insurance
A) The buyer has no obligation under the contract of carriage
B) The buyer has no obligation under the contract of carriage insurance
A.4. Supply
B.4. Taking delivery
The seller must place the goods at the disposal of the buyer or another person named by the buyer, unshipped, on any arriving vehicle, at the named place of destination, on the agreed date or within the time agreed for delivery.
The buyer must take delivery of the goods when they have been delivered in accordance with A4.
A.5. Transfer of risks
B.5. Transfer of risks
The seller must deliver the goods subject to the provisions of Article B.5. and bear all risks of loss of or damage to the goods until they have been delivered in accordance with A4.
The buyer must bear all risks of loss of or damage to the goods from the time they have been delivered in accordance with A4. The buyer is obligated – if he fails to fulfill his obligation in accordance with B.2. – bear all additional risks of loss and damage caused in this way to the goods. The buyer is obliged – if he fails to fulfill his obligation to give notice in accordance with Article B.7. – bear all risks of loss or damage to the goods from the expiration of the agreed date or the end of the agreed delivery time. The condition, however, is that the goods comply with the contract. This means that the goods must be properly identified, that is, definitely isolated or otherwise identified as the goods that are the subject of this contract.
A.6. Allocation of costs
B.6. Allocation of costs
The seller is obliged, subject to the provisions of Article B.6.:
– in addition to the costs arising from A.3a), bear all costs associated with the goods until the time when they are delivered in accordance with A.4., and
– if required, pay all costs associated with the implementation of customs formalities for export and import, as well as other duties, taxes and other fees payable for the export and import of goods and their transit through third countries prior to delivery in accordance with article A.4.
The buyer must, in accordance with the provisions of A.3a):
– bear all costs associated with the goods from the moment of delivery in accordance with Article A.4.
– bear all additional costs if he fails to fulfill his obligations in accordance with Article B.2. or give notice in accordance with Article B.7. The condition, however, is that the goods comply with the contract. This means that the goods must be properly identified, that is, definitely isolated or otherwise identified as the goods that are the subject of this contract.
A.7. Buyer notification
B.7. Seller notification
The Seller is obliged to properly notify the Buyer of the shipment of the Goods and send the Buyer any other notices that may be necessary for the Buyer to perform the actions required to accept delivery
The buyer is obliged, if he is entitled to determine the time within the specified period and / or the point of delivery at the named place of destination, duly notify the seller.
A.8. Proof of delivery, shipping documents or equivalent emails
B.8. Proof of delivery, shipping documents or equivalent emails
The seller must provide the buyer at his own expense a delivery order and / or ordinary transport document (e.g. a negotiable bill of lading, non-negotiable sea waybill, proof of inland waterway transport, air waybill, rail or road waybill, or multimodal transport bill of lading) as may be required to the buyer in order to accept delivery of the goods in accordance with Articles A4. / B.4. In the event that the seller and the buyer have agreed to use electronic communications, the documents referred to above may be replaced by equivalent electronic messages (EDI).
The buyer must accept the required delivery order or transport document in accordance with A.8.
A.9. Inspection - packaging - marking
B.9. Inspection of goods
The seller must bear the costs of the checking of the goods (e.g. checking the quality, dimensions, weight, quantity) necessary to deliver the goods in accordance with A4. The seller must provide the packaging at his own expense (unless in the industry it is customary for the trade to deliver the goods specified in the contract without the packaging) necessary for the delivery of the goods. Packaging must be properly labeled.
The buyer is obliged to bear the costs of the pre-shipment inspection of the goods, unless such inspection is required by the authorities of the country of export.
A.10. Other responsibilities
B.10. Other responsibilities
The seller is obliged to bear all costs and pay the fees associated with the receipt of documents or their equivalent electronic messages, as provided in article B.10., and also reimburse all costs incurred by the buyer as a result of rendering assistance. The seller is obliged to provide the buyer with all the information necessary to carry out the insurance.
The buyer is obliged, at the seller’s request, to render the latter, at his expense and risk, full assistance in obtaining any documents or equivalent electronic messages issued or transmitted in the country of import that the seller may need to place the goods at the disposal of the buyer.
The main feature of the DDP term / Delivery Duty Paid is the import customs clearance of the goods by the seller at his own expense.
When shipping abroad, the handling of customs formalities by WR Group can be a decisive factor for many international companies.
According to the EAEU Customs Code, the importer must be a registered legal entity in the Eurasian Economic Union in order to carry out customs clearance of the goods when importing into the member country. On the one hand, a foreign supplier has the opportunity to set up a subsidiary in the EAEU for customs clearance of imported goods and payment of duties and taxes in the relevant national currency. The establishment procedure requires certain time investment and knowledge of Eurasian legislation, and also involves significant additional costs for the foreign company.
Having a local partner who can deliver on DDP terms is an efficient solution for global manufacturers and exporters.
The WR Group is represented worldwide. A subsidiary in the EAEU enables legal and fast customs clearance of imported goods in the customs territory of the respective EAEU country. WR Group affords foreign manufacturers and suppliers worldwide the opportunity to make a profitable offer to their buyers, assuming all risks and responsibilities.
DDP delivery allows the sender of the goods to bear the costs of their transportation and customs clearance, as well as the risks assiciated with it, thereby offering the buyer more favorable conditions for the purchase and facilitating the purchase decision.
WR Group provides fast and reliable door-to-door delivery of goods and equipment, including express deliveries and warranty / spare parts deliveries, and manages all necessary customs formalities.
We assume all risks and full responsibility for the safe and timely delivery of complex multi-component plants by land, sea or air.
We will assess the need to obtain a classification decision and carry out customs clearance in accordance with the applicable customs laws of the Eurasian Economic Union. Customs duties and other charges will be paid by us in the national currency. Both European manufacturers and Eurasian companies can enjoy the benefits of DDP delivery by WR Group.
Companies
Europe / world / not EAEU
The ability to import goods and equipment into the Eurasian Economic Union and go through all customs formalities without having one’s own branch/agent in the EAEU and a current account in the relevant national currency.
Warranty / spare parts deliveries
Companies
Customs Union
The ability to buy foreign-made goods when paying in the currency of the EAEU (rubles).
Warranty / spare parts deliveries
We deliver goods from all over the world on DDP terms with benefits for both contracting parties.
Within the DDP delivery, WR Group will plan an economically viable route and transport the goods by land, sea or air, including customs clearance at any customs terminal in the destination country.
Incoterms 2020
Incoterms are used to clearly define and delimit the rights and obligations of the seller and the buyer in the international supply of goods and equipment. Incoterms ® (International commerce terms) is a trademark of the International Chamber of Commerce (ICC), which developed this international set of rules.
Incoterms determine which transport costs are to be borne by the seller and which by the buyer. They also document who bears the financial risk in case of loss or damage to the goods (transfer of risks).
The latest amendment to the Incoterms rules was formulated in 2019 and came into force on January 1, 2020.
Incoterms are used to standardize and unify the terms of delivery. Incoterms also ensure the uniform application of frequently used terms in national and international trade.
The legal basis for the application of Incoterms in Russia is, on the one hand, Article 9 of the UN Convention on Contracts for the International Sale of Goods, and on the other hand, Articles 421 and 422 of the Civil Code of the Russian Federation. At the same time, Incoterms play the role of a trade custom and are optional. However, if the foreign trade contract contains a reference to one of the clauses set out in the Incoterms, the relevant provisions become binding on the parties.
Incoterms 2020 contains eleven clauses, which are divided into two categories: for all modes of transport and for sea / inland waterway transport
Incoterms 2020 rules
for any type of transport
- EXW - "Ex Works"
- FCA - "Free Carrier"
- CPT - "Carriage Paid to"
- CIP - "Carriage and Insurance Paid to"
- DPU - "Delivered Named Place Unloaded"
- DAP - "Delivered at Place"
- DDP - "Delivered Duty Paid"
Incoterms Rules 2020
for sea and inland waterway transport
- FAS - "Free Alongside Ship"
- FOB - "Free on Board"
- CFR - "Cost and Freight"
- CIF - "Cost Insurance and Freight"
In addition, Incoterms 2020 can be divided into four groups of rules for basic terms of delivery of goods: group E (shipment), group F (main transportation paid by the buyer), group C (main transportation paid by the seller) and group D (delivery). This classification is based on two principles: defining the obligations of the parties in relation to the transportation of the supplied goods and increasing the seller’s obligations from minimum to maximum.
Each Incoterms 2020 rule contains two sections of ten articles:
- A1 / B1 General responsibilities
- A2 / B2: Delivery
- A3 / B3: Transfer of Risks
- A4 / B4: Transportation
- A5 / B5: Insurance
- A6 / B6: Transportation and transportation documents
- A7 / B7: Customs clearance of export / import
- A8 / B8: Inspection / Packing / Marking
- A9 / B9: Cost Allocation
- A10 / B10: Notifications
Section “A” stipulates the obligations of the Seller, and section “B” – the obligations of the Buyer
In the new version of Incoterms 2020, the current rules were revised in order to simplify them as much as possible and remove unnecessary delivery bases that can cause confusion and misunderstanding in the use of trade terms, as well as a clearer explanation of all terms of delivery for exporters and importers around the world. As a result, Incoterms 2020 did not undergo significant changes: not a single term was deleted, and not a single term was added, one of the terms of delivery was renamed
You can read a summary of the main changes in Incoterms 2020 here
1. The term DAT has been renamed to DPU delivery condition.
DAT delivery basis (Delivered at Terminal) has been renamed to DPU Incoterms 2020 delivery term (Delivered Named Place Unloaded).
2. Changes to FCA delivery terms.
In accordance with the new Incoterms 2020 rules, the FCA delivery clause allows the parties to agree in the sales contract that the buyer must instruct his carrier to issue a bill of lading with an onboard record to the seller.
3. Change in the level of insurance coverage for the term CIP.
For the terms of delivery of CIP Incoterms 2020, the seller is now obliged to insure the goods against all risks with the maximum insurance coverage and the insured amount of at least 110% of the value of the goods.
4. Transportation of goods by our own transport
The new Incoterms 2020 rules currently take into account situations where you can use your own transport to deliver goods or enter into a transportation contract.
5. Allocation of costs
All costs associated with various aspects of the sale and purchase are now listed in clauses A9 / B9 ‘Allocation of costs’ for each Incoterms rule, as well as in the corresponding Incoterms clauses to which they relate.
6. Customs clearance: export, transit and import
International Incoterms 2020 rules more precisely explain which party, the seller or the buyer, is responsible for completing customs clearance and customs formalities at the border, assuming the costs and the risks. It also includes the release of goods in transit for the first time.
7. Safety requirements
Now Article A4 / B4 (‘Transportation’) of each Incoterms 2020 rule, as well as Article A7 / B7 (‘Customs clearance of export / import’) have general references to ‘security’.
8. Explanatory notes
Each Incoterms 2020 rule now contains ‘Explanatory Notes for Users’, which provide much more extensive explanatory notes with illustrations of the corresponding Incoterms delivery terms.
WR Group specialists will provide a complete list of Incoterms 2020 conditions with explanations and advise on individual terms of delivery. We will deliver goods and equipment to Russia under any Incoterms 2020 conditions. We will carry out DDP delivery of any cargo, including oversized, to Russia with customs clearance, taking on all responsibilities and risks during transportation.
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