“Delivery with Duty Prepaid” rule expresses that the seller delivers the goods, cleared of customs, without unloading the transport vehicle visiting the designated destination leaving it for the disposal of the buyer.
Characteristics of the delivery type: In this type of delivery, it is based on the same principles as DDU delivery type; however, in the DDP delivery form, seller also has to pay duties. It transfers the goods in the manner that is not different from a domestic seller in the buyer’s country. If the parties wish the buyer to undertake the expenses for the damages and costs regarding the customs clearance of the goods DAP Rule must be used.
Seller’s Obligations: DDP Rule demonstrates maximum obligation for the seller. Seller prepares the goods in compliance with the agreement terms and conditions. Prepares the required documents to be used in its own country and in that of the buyer. Completes the Export and Import Customs clearance works. Seller, bearing the expenses, must make a transport agreement to have the goods carried to the designated terminal. Seller’s has no obligation to enter into an insurance agreement. Carrier provides the vehicle and pays the freight charge. Until the delivery, all the expenses and risks with regard to the goods belonging to the seller. Realizes the delivery in the buyer’s country at the specified place and on the specified date by means of paying the respective duties. In the event that no contrary provision was set out in the sales agreement expressly, the VAT and all other taxes regarding the import shall be borne by the seller.
Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions and receives the goods. Pays all the expenses as of the moment when the goods are delivered as stipulated. Buyer has no obligation against the seller like any preloading examination expense imposed by the import or export countries.