Incoterms - Metronak

DELIVERY METHODS (INCOTERMS 2010)

Delivery Methods have changed. The ICC published the Incoterms 2010 revision on 27 September 2010. The revision in question went into effect as of January 1, 2011. INCOTERMS is a term created by combining some syllables from English (International commercial terms) words. INCOTERMS are prepared by ICC (International Chamber of Commerce) (MTO).

The most radical change was the repeal of the four rules. The terms DAF (Delivered at Frontier), DES (Delivered Ex Ship), DEQ (Delivered Ex Quay), DDU (Delivered Duty Unpaid) are abolished as of the beginning of 2011. they were removed. Instead, two new terms were introduced: DAT (Delivered at Terminal) and DAP (Delivered at Place). Thus, the number of Incoterms rules was reduced from 13 to 11.

INCOTERMS was also broadly divided into two groups. The rules covering all transportation types were determined as seven: EXW – FCA – CPT – CIP – DAT – DAP – DDP. FAS – FOB – CFR – CIF rules were also collected under the classification of “rules specific to sea and inland water transportation” to cover only the types of transportation carried out by waterways.

On the other hand, very important changes have been made in the content of FAS – FOB – CFR – CIF rules.



DELIVERY AT WORKS / EX WORKS (EXW)

The term “delivery at work” means that the seller delivers the goods at his own place or at another named place (such as a factory, warehouse, workplace) by leaving it at the disposal of the buyer. EXW represents the minimum obligation for the seller. While FCA (Free Carrier) is more suitable for international trade, this rule is suitable for domestic trade.

Features of the delivery method: The seller keeps the goods ready for the buyer’s order on the previously determined date in his facility and notifies the buyer. The buyer receives the goods from the business, prepares the necessary documents for export, completes the customs procedures and imports the goods to his own country. From the time the goods are delivered to the facility, all costs and risks related to the goods are borne by the buyer.

Obligations of the Seller: The seller prepares the goods in accordance with the contract conditions and keeps the goods at the disposal of the buyer at the place specified in the agreement (Factory, warehouse, workplace, etc.) on the specified date or within the specified time, without being loaded on any transportation vehicle. It informs the buyer that the goods are kept ready for his order. It helps the buyer to obtain export-related documents. If the buyer requests, he makes an agreement with the transportation agency, all expenses and risks of which belong to the buyer, and sends the transport document to the buyer so that he can receive the goods at the destination. The seller has no obligation to the buyer to conclude a transportation contract and insurance contract. If there is no specific point at the designated delivery location that is clearly agreed upon, and if there are several suitable points, the seller can choose the one that best suits his purpose. The seller must pay the costs associated with the necessary control operations (quality control, measurement, weighing, counting, etc.) before the goods can be delivered.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. Licenses, etc. required for all kinds of export and import transactions related to goods, at his own expense and risk. It is responsible for preparing administrative and commercial documents, obtaining the necessary permits, carrying out customs procedures and paying customs duties. All risks and expenses related to the goods are the responsibility of the Buyer from the moment the goods are received at the seller’s facility. He makes an agreement with the transportation agency to transport the goods and pays the freight cost. The buyer must provide the seller with the necessary documents and evidence that he has received the goods. The buyer must pay any pre-shipment inspection costs, including inspection costs stipulated by the country of export.

FREE CARRIER (FCA)

The “Free Carrier” rule means that the seller delivers the goods to the carrier or another person appointed by the buyer at the seller’s workplace or another designated place.

Features of the delivery method: In this type of delivery, the seller completes the delivery process when he completes the customs procedures and transfers the goods to the supervision of the first carrier on the specified date and place. From this moment on, all costs and risks related to the goods pass to the buyer. Freight fee is paid by the buyer like all other expenses.

Seller’s Obligations: FCA rule requires the seller to clear goods for export to the extent applicable. The seller must obtain all necessary permissions for the export of the goods, arrange all the necessary documents for the export of the goods and complete the customs procedures, at his own risk and expense. The seller has no obligation to the buyer to conclude a transportation contract and insurance contract. Upon the buyer’s request, an agreement is made with the transportation agency, all expenses being borne by the buyer. It delivers the goods to the carrier or the transportation agency’s supervision on the specified date and place. If there is no specific point at the designated delivery location that is clearly agreed upon, and if there are several suitable points, the seller can choose the one that best suits his purpose. All costs and risks are the responsibility of the seller until the moment of delivery. The seller must pay the costs related to the control procedures necessary for the delivery of the goods (quality control, measurement, weighing, counting, etc.) and the costs of the pre-shipment inspection ordered by the authorities of the export country. The seller, at his own expense, provides the buyer with the usual proof of delivery of the goods.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. He/she receives the goods on the specified date and place. From this moment on, all expenses and risks belong to the buyer. He/she is responsible for obtaining import-related documents or permits and paying customs duties and expenses. Pays the freight fee by making an agreement with the transportation agency. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export.

CARRIAGE PAID TO (CPT)

The “Carriage Paid To” rule states that the seller will deliver the goods to a carrier or other person of his choice at the specified place (unless such a place has been agreed by the parties) and that the seller shall deliver the goods to the specified destination. It means that the party is obliged to conclude the transportation contract and pay the transportation costs.

When the CPT rule is used (just like CIP, CFR or CIF rules), the seller fulfills his delivery obligation not when the goods reach their destination, but when he deposits the goods with the carrier in accordance with the relevant rule.

Features of the delivery method: This delivery method is especially used in multi-vehicle transportation types. The seller is responsible for paying the freight to the destination. From the moment the goods are transferred to the custody of the first carrier, all risks and expenses other than freight pass to the buyer.

Obligations of the Seller: The seller prepares the goods in accordance with the contract conditions. It prepares the necessary documents to be used in the buyer’s country. Completes customs procedures. He makes a contract with the transportation agency and pays the freight fee to the destination port. From the moment the goods are transferred to the custody of the first carrier, he is free from all risks and expenses related to the goods. It notifies the buyer when the delivery has been made and the probable arrival date. The seller must pay the costs related to the control procedures necessary for the delivery of the goods (quality control, measurement, weighing, counting, etc.) and the costs of the pre-shipment inspection ordered by the authorities of the export country.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. Complete customs procedures for imports by editing the customs documents. Pays customs duties. From the delivery of the goods to the first carrier, all costs and risks related to the goods, other than freight, belong to the buyer. Customs expenses that may arise due to transit transportation are also borne by the buyer. If it is not included in the freight cost, he/she pays the unloading costs and receives the endorsed bill of lading from the agency. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export.

CARRIAGE AND INSURED PAID TO (CIP)

The “Carriage and Insurance Paid” rule states that the seller will deliver the goods to a carrier or other person of his choosing at the specified place (if such a place is not agreed upon by the parties) and that the seller will deliver the goods to a carrier or other person of his choice. It means that he/she is obliged to conclude the transportation contract and pay the transportation costs to be brought to the specified destination.

When the CIP rule is used (just like the CPT, CFR or CIF rules), the seller fulfills his delivery obligation not when the goods reach their destination, but when he deposits the goods with the carrier in accordance with the relevant rule.

Features of the delivery method: In this type of delivery, the seller bears the insurance premium, freight and loading costs and risks and brings the goods to the port where they will be loaded. The seller makes an agreement with the shipping agency and supplies it. It informs the buyer that the goods in the sales contract have been loaded on the date and place specified. The seller obtains transportation insurance with the narrowest scope appropriate to the type of goods he has loaded by paying the insurance premium. However, if the buyer wants insurance against extraordinary risks (strike, war, natural disaster, etc.), he can request the seller to expand the insurance coverage, provided that he pays the premium himself. It is made by the seller with 10% more than the price of the goods.

Obligations of the Seller: The seller must prepare the goods in accordance with the contract conditions. The seller must obtain all permissions necessary for the export of the goods, arrange all documents necessary for the export of the goods and complete the customs procedures, at his own risk and expense. It is the seller’s responsibility to prepare the necessary documents to be used in the buyer’s country. He makes a contract with the transportation agency and pays the freight fee to the destination port. The seller insures the goods he sends at his own expense. Must provide buyer with insurance policy or other evidence of insurance coverage. From the moment the goods are transferred to the supervision of the first carrier, he is free from the relevant risks and expenses. From this moment on, all costs and risks related to the goods, except freight and insurance premium, belong to the buyer. Informs the buyer that the delivery has been made and the probable arrival date.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. It unloads its goods without delay by paying the unloading costs and port fees at the port of destination. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export. All expenses incurred after the moment of delivery, except freight and insurance premium, are borne by the buyer. Complete customs procedures for imports by editing the customs documents. It pays all duties, taxes and other charges payable for import, as well as costs related to customs procedures.

DELIVERED AT TERMINAL (DAT) (EFFECTIVE: 01.01.2011)

The “Delivery at Terminal” rule states that the seller delivers the goods by leaving them at the disposal of the buyer, unloaded from the incoming transportation vehicle at the designated terminal at the designated destination or port. The term terminal includes any place that may be uncovered or covered, such as a dock, warehouse, container yard or road, rail or air cargo station. If the parties intend for the seller to bear the damage and costs associated with the transportation and handling of the goods from the terminal to another location, DAP or DDP rules should be used.

Features of the delivery method: It means that the goods are provided (delivered) to the buyer at the destination to be unloaded by the means of transport, and it replaces the previous DEQ clause and, unlike DEQ, multimodal (for multiple vehicles) can be used. DAT In other words, the goods are left at the disposal of the buyer at the terminal point determined by the buyer and the seller (this point may be a port, customs warehouse or the buyer’s factory), with the unloading costs covered by the seller. All customs procedures, expenses, taxes, duties and charges arising from customs are the responsibility of the buyer. Among the removed terms, DAF, DES and DDU are replaced. The seller bears the costs of transportation of the goods to the specified location / risks of terminal-related damage.

Obligations of the Seller: The seller must prepare the goods in accordance with the contract conditions. The seller must, at his own risk and expense, obtain any necessary permits for the export of the goods and complete the necessary customs formalities for the export of the goods or their transit through another country before delivery. The seller must conclude a contract of carriage for the transportation of the goods to the designated terminal at his own expense. The seller has no obligation to enter into an insurance contract towards the buyer. The seller must deliver the goods on the agreed date, at the agreed terminal at the place of destination or port, by unloading them from the incoming transport vehicle and leaving them at the disposal of the buyer. If a specific terminal has not been agreed upon, the seller may choose the terminal that best suits his purpose at the agreed destination or port. The Seller shall pay all costs relating to the goods up to the time of their proper delivery and, to the extent applicable, customs clearance costs necessary for export before delivery of the goods as described above, and all duties, taxes and other charges payable for export, and the costs of transiting the goods through any country.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. To the extent applicable, the buyer must obtain, at his own risk and expense, any import permit or other official authorization and complete all customs clearance for the import of the goods. From the moment the goods are delivered as described above, all costs related to these goods are the responsibility of the buyer. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export.

DELIVERED AT PLACE (DAP) (EFFECTIVE: 01.01.2011)

The “Delivery at Determined Place” rule states that the seller delivers the goods by leaving them at the disposal of the buyer without unloading them from the transportation vehicle arriving at the specified destination.

Characteristics of the delivery method: means the provision (delivery) of the goods to the buyer at a specified point to be unloaded by the means of transport. DAP replaced the previous DAF, DES, and DDU. DAP, in other words, is the delivery of the goods to the buyer’s command on the transport vehicle, ready for unloading, at the unloading place determined by the buyer and seller (a port pier, customs point, airport). All customs procedures, expenses, taxes, duties and charges arising from customs are the responsibility of the buyer. The seller bears the costs of transporting the goods to the specified location / risks of terminal-related damage.

Obligations of the Seller: The seller must prepare the goods in accordance with the contract conditions. The seller must, at his own risk and expense, obtain any necessary permits for the export of the goods and complete the necessary customs formalities for the export of the goods or their transit through another country before delivery. The seller must conclude a contract of carriage for the transportation of the goods to the designated terminal at his own expense. The seller has no obligation to enter into an insurance contract towards the buyer. The seller must deliver the goods on the agreed date, at the place of destination, if any, at the agreed point, leaving them at the disposal of the buyer, ready to be unloaded from the incoming means of transport. The Seller shall pay all costs relating to the goods up to the time of their proper delivery and, to the extent applicable, customs clearance costs necessary for export before delivery of the goods as described above, and all duties, taxes and other charges payable for export, and the costs of transiting the goods through any country.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. To the extent applicable, the buyer must obtain, at his own risk and expense, any import permit or other official authorization and complete all customs clearance for the import of the goods. From the moment the goods are delivered as described above, all costs related to these goods are the responsibility of the buyer. It pays the costs necessary to unload the goods from the incoming transport vehicle so that they can be received at the designated destination, except in cases where it is stipulated in the contract of carriage that these costs will be borne by the seller. To the extent applicable, the buyer must pay all duties, taxes and other charges and other charges payable for the import of the goods. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export.



DELIVERED DUTY PAID (DDP)

The “Delivery with Customs Duties Paid” rule means that the seller delivers the goods as customs-cleared for import and ready to be unloaded on the transport vehicle at the designated destination, leaving them at the disposal of the buyer.

Features of the delivery method: This delivery method is based on the same principles as the DDU delivery method; However, in the DDP delivery method, the seller must also pay customs duties. It transfers the goods no different than a local seller in the buyer’s country. If the parties want the buyer to bear all damages and costs related to customs clearance of goods for import, the DAP Rule should be used.

Obligations of the Seller: The DDP Rule indicates the maximum liability on the part of the seller. The seller prepares the goods in accordance with the contract conditions. It prepares the necessary documents to be used in its own country and the Buyer’s country. Completes Export and Import Customs procedures. The seller must conclude a contract of carriage for the transportation of the goods to the designated terminal at his own expense. The seller has no obligation to enter into an insurance contract towards the buyer. The carrier provides the vehicle and pays the freight fee. All costs and risks related to the goods until delivery belong to the seller. The delivery is made at the place and date determined in the buyer’s country, by paying the customs duties. Unless otherwise expressly agreed in the sales contract, VAT and all other taxes to be paid regarding imports belong to the seller.

Obligations of the Buyer: Pays the price of the goods and receives the goods in accordance with the contract conditions. It covers all expenses related to these goods from the moment the goods are delivered as stipulated. The buyer has no obligation to the seller to pay any pre-shipment inspection costs ordered by the authorities of the export or import country.

FREE ALONGSIDE SHIP (FAS)

The “Free ALONGSIDE SHIP (FAS)” rule means that the seller delivers the goods by leaving them at the designated loading port, in line with the ship selected by the buyer (for example, on a dock or on a barge). Where goods are in containers, it is usual for the seller to deliver the goods to the carrier at a terminal rather than in line with the ship. In such cases, this rule is not appropriate and the FCA rule should be used.

Features of the delivery method: In this delivery method, the seller is responsible for bringing the goods to the ship. If the goods are at the ship dock, they are delivered to the loading point. If the ship is anchored offshore, they are delivered by barges to the ship. Risks such as loss or damage to the goods after delivery belong to the buyer. From this moment on, all costs and freight related to the goods are covered by the buyer. In this type of delivery, all export-related documents are prepared by the buyer. Customs procedures are also carried out by the buyer. If it is not possible for the buyer company to act as an exporter in this country, this delivery method should not be chosen.

Obligations of the Seller: The seller prepares the goods in accordance with the terms of the contract. Upon the buyer’s request, all expenses and risks belong to the buyer; It helps the buyer obtain the necessary documents and similar administrative and commercial documents requested in his country. The seller has no obligation to the buyer to conclude a transportation contract and insurance contract. The delivery process is completed by bringing the goods to the ship previously determined by the buyer at the specified port on the specified date. From this moment on, all costs and risks related to the goods pass to the buyer. At the buyer’s request; The seller ensures that the loading document is prepared at the buyer’s expense and sends the goods to the buyer so that he can receive them at the port of destination. And makes the necessary notifications without delay. To the extent applicable, it must pay the costs of customs clearance required for export and all duties, taxes and other charges payable for export.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. Prepares the necessary documents regarding export and import and pays all customs expenses. By making an agreement with the transportation agency, the seller is informed approximately when the ship will arrive at the loading port. Receives the goods kept ready for the loading order. From this moment on, all expenses and risks belong to the buyer. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export.

FREE ON BOARD (FOB)

The “Free On Board” rule means that the seller delivers the goods at the designated loading port, on the ship selected by the buyer, or by procuring the goods delivered in this way. This rule may not be appropriate where the seller delivers the goods to the carrier at a terminal before they are loaded onto the ship. For example, when goods are in containers, it is normal for them to be delivered in this way. In such cases, the FCA rule should be used.

Features of the delivery method: In this delivery method, the seller loads the goods onto the ship provided by the buyer at the specified date and place. Any damage, loss and expenses that may occur after the goods pass to the ship’s rail (deck) are the responsibility of the Buyer. The seller prepares all the documents required for export, completes the customs procedures and delivers the goods.

Obligations of the Seller: The seller prepares the goods in accordance with the contract conditions. It loads the ship provided by the buyer on the specified date at the specified port. The seller has no obligation to the buyer to conclude a transportation contract and insurance contract. It prepares the necessary documents to be used in the buyer’s country and completes the customs procedures. It notifies the recipient that the installation has been completed. It prepares the transport document and other necessary documents to be used in the buyer’s country and sends it to the buyer according to the payment method. Any damage or loss that may occur until the goods pass the ship’s rail (deck) is the responsibility of the Seller. To the extent applicable, it must pay the costs of customs clearance required for export and all duties, taxes and other charges payable for export.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. Complete customs procedures for imports by editing the customs documents. Pays customs duties. Pays the freight cost by making an agreement with the transportation agency. Once the goods pass the ship’s rail at the loading port, all costs and risks related to the goods are the responsibility of the Buyer. To the extent applicable, it must pay all duties, taxes and customs clearance costs payable on imports and the costs of transiting the goods through any country. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export.

COST AND FREIGH (CFR)

The “Costs and Freight” rule means that the seller must deliver the goods on board or supply the goods that have already been delivered in this way. This rule may not be appropriate where the seller delivers the goods to the carrier at a terminal before they are loaded onto the ship. For example, when goods are in containers, it is normal for them to be delivered in this way. In such cases, the CPT rule should be used.

When the CFR rule is used (just like CIP, CPT or CIF rules), the seller fulfills his delivery obligation not when the goods reach their destination, but when he deposits the goods with the carrier in accordance with the relevant rule.

Features of the delivery method: In this delivery method, the seller bears all costs and risks and brings the goods to the port where they will be loaded. It carries out the customs procedures and carries out the loading by paying the freight fee. From this moment on, all costs and risks related to the goods other than freight belong to the buyer.

Obligations of the Seller: The seller prepares the goods in accordance with the contract conditions. It prepares the necessary documents to be used in the buyer’s country. Completes customs procedures. He makes a contract with the transportation agency and pays the freight fee to the destination port. The seller must conclude a contract of carriage for the transportation of the goods to the designated terminal at his own expense. The seller has no obligation to enter into an insurance contract towards the buyer. After the goods pass the ship’s rail, all expenses and risks other than freight belong to the buyer. The seller notifies the buyer that the shipment has taken place and the probable arrival date. It sends the prepared transport document and other necessary documents to the buyer.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. Complete customs procedures for imports by editing the customs documents. Pays customs duties. It unloads its goods without delay by paying the unloading costs and port fees at the port of destination. He/she must pay all expenses other than freight incurred regarding the goods during transportation. To the extent applicable, it must pay all import duties, taxes and customs clearance costs on the import of the goods and the costs of transiting the goods through any country, provided that they are not covered by the contract of carriage. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export.

COST, INSURANCE AND FREIGHT (CIF)

The “Costs, Insurance and Freight” rule means that the seller must deliver the goods on board or supply the goods that have already been delivered in this way. This rule may not be appropriate where the seller delivers the goods to the carrier at a terminal before they are loaded onto the ship. For example, when goods are in containers, it is normal for them to be delivered in this way. In such cases, the CIP rule should be used.

When the CIF rule is used (just like CIP, CPT or CFR rules), the seller fulfills his delivery obligation not when the goods reach their destination, but when he deposits the goods with the carrier in accordance with the relevant rule.

Features of the delivery method: In this type of delivery, the seller bears the insurance premium, freight and loading costs and risks and brings the goods to the port where they will be loaded. The seller makes an agreement with the shipping agency and supplies it. It informs the buyer that the goods in the sales contract have been loaded on the date and place specified. By paying the insurance premium, the seller obtains the narrowest comprehensive marine transportation insurance appropriate to the type of goods he loads. After the goods are loaded onto the ship, costs and risks other than freight and insurance premium pass to the buyer.

Obligations of the Seller: The seller prepares the goods in accordance with the contract conditions. It prepares the necessary documents to be used in the buyer’s country. Completes customs procedures. The seller must conclude a transportation contract and insurance contract for the transportation of the goods to the designated terminal at his own expense. He makes a contract with the transportation agency and pays the freight fee to the destination port. He insures the goods he sends and pays the insurance premium. It informs the buyer about the approximate date that the goods will be at the port of destination. It sends the prepared transport document and other necessary documents to the buyer. To the extent applicable, it must pay the costs of customs clearance required for export and all duties, taxes and other charges payable for export.

Obligations of the Buyer: Pays the price of the goods in accordance with the contract conditions. Complete customs procedures for imports by editing the customs documents. Pays customs duties. It unloads its goods without delay by paying the unloading costs and port fees at the port of destination . All expenses incurred after the moment of delivery, except freight and insurance premium, are borne by the buyer. The buyer must pay any other mandatory pre-shipment inspection costs, excluding pre-shipment inspection costs ordered by the authorities of the country of export.

9) DELIVERED AT FRONTIER (DAF) (Repealed in 2011)

This term means that the seller’s delivery obligation ends when the goods are cleared for export and are kept ready for order at the place or point determined at the border, but before the customs border of the adjacent country.

The term border can be used for any border, including the border of the exporting country. It is therefore vital that within the term the boundary in question is always clearly defined by specifying the point or location.


10) DELIVERED EX SHIP (DES) (Repealed in 2011)

With this term, the seller’s delivery obligation ends by keeping the goods ready for the buyer’s order at the designated port of destination, on the ship’s board, without passing through import customs. The seller undertakes all expenses and risks necessary to bring the goods to the designated port of destination. This term can only be used for sea or inland water transport.


11) DELIVERY

AT DELIVERED

It means that it delivers the goods by leaving them at the disposal of the buyer as unfulfilled. The seller must bear all damages and costs related to transportation of the goods to the designated port of destination and unloading them to the dock (pier). The term DEQ envisages the buyer’s responsibility for customs clearance of goods for import and payment of all related transactions, taxes, duties and other charges.

THIS IS IN CONTRARY TO PREVIOUS INCOTERM VERSIONS, WHICH PROVIDED THE SELLER TO CARRY OUT THE NECESSARY CUSTOMS CLEARANCE PROCEDURES FOR IMPORT.

However, if the parties wish to include the costs paid for the import of the goods partially or completely among the seller’s obligations, this situation should be clarified by a clear statement to be added to the sales contract for this purpose.

This term can only be used if the goods are to be delivered by sea or inland waterway or multi-vehicle transport by being unloaded from the ship to the dock (pier) at the port of destination. However, if the parties wish to include among the seller’s liabilities the damages and expenses related to the transfer of goods from the dock to another location within or outside the port, the terms DDU or DDP should be used.

12) DELIVERED DUTY UNPAID (DDU) (Repealed in 2011)

With this term, the seller’s delivery obligation ends when the goods are kept ready for order at the specified place in the import country. The seller has to undertake the risks and expenses related to the transportation of the goods to that point and the fulfillment of customs formalities (excluding taxes, duties and charges to be paid for import).

The buyer has to bear the additional expenses and risks arising from the goods not being cleared for import on time.

If the parties want the seller to fulfill the customs formalities and undertake the expenses and risks that may arise from this, they must make this clear by adding words that will create this effect.

If the parties want to add some expenses necessary for the import of goods to the seller’s obligations (such as VAT), they must make this clear by adding words to this effect. This term can be used regardless of the mode of transport.