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INTERNATIONAL DELIVERY INCOTERMS

Ex works" means that the seller fulfils his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc.) to the buyer. This term thus represents the minimum obligation for the seller. FCA (Free Carrier - Carrier without expense) is more suitable for international trade while this rule is more suitable for domestic trade."

 

Characteristics of the delivery type: Seller keeps the goods in its enterprise for the order of the buyer on the predetermined date. Buyer prepares the required documents receiving the goods from the enterprise, after completing the customs clearances for export, and imports them to its own country. As of the delivery of the goods in the enterprise, all the expenses and risk regarding the goods are borne by the buyer.

 

Seller`s Obligations: Seller keeps the goods ready for the order of the buyer in compliance with the agreement terms and conditions after preparing them, on the specified date, at the place designated in the agreement for such period (factory, warehouse, workplace etc.) in the manner that it they are not embarked on any transport vehicle. Notifies the buyer regarding the fact that the goods are kept ready for the order of the buyer. Assists buyer to receive the documents with regard to the export. In the event that the buyer so-demands, on condition that all the expenses and risks shall be borne by the buyer, it makes an agreement with the transport agency  and sends the corrected transport document to the buyer in order to receive the goods at the place of destination. Seller does not have an obligation against buyer for entering into a transport agreement and insurance agreement. If there is no particular clearly agreed spot at the delivery place, and if there are few suitable spots, seller might select the most suitable one for its objective among these spots. Seller must pay the respective expenses of the control processes required for the delivery of the goods (quality control, measurement, weighing, count etc.).

 

Buyer`s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. On condition that all expense and risk shall be borne by itself, it arranges the required license, etc. administrative and commercial documents regarding the  goods for all kinds of export and import transactions, receives the required consents, carries out the customs clearances, and pays the customs taxes. From the moment it receives the goods in seller`s enterprise, all kinds of respective risk and expenses regarding the goods are in the responsibility of the buyer. It pays the fee of the freight for the transport of the goods entering into an agreement with the transport agency. Buyer must provide the documents and evidences regarding its receipt of the goods to the seller. Buyer must pay all kinds of costs of inspections, including the examination expenses stipulated by the export country, prior to the loading.

 

«Free Carrier» means that the seller delivers the goods, to the carrier nominated by the buyer at the named place.


Characteristics of the delivery type: In this type of delivery, seller completes the customs clearances regarding the goods and finishes its delivery works at the moment it makes the transfer to the first carrier on the specified date and in the specified place. As of this moment, all the expenses and risk regarding the goods pass to the buyer. Freight fee is paid by the buyer like the all other expenses.


Seller`s Obligations: FCA rule requires, seller`s customs clearance, as applicable, on the goods for export. On condition that all expenses and damage shall be borne by itself, receives the required consents, it arranges the required documents for the export of the goods, and carries out the customs clearances. Seller does not have an obligation against buyer for entering into a transport agreement and insurance agreement. In the event that the buyer so-demands, on condition that all the expenses and risks shall be borne by the buyer, it makes an agreement with the transport agency. Delivers the goods to the carrier or to the specified date and place under the supervision of the transport agency. If there is no particular clearly agreed spot at the delivery place, and if there are few suitable spots, seller might select the most suitable one for its objective among these spots. Seller must borne all the respective expenses and risks until the time of the delivery. Seller must pay the respective expenses of the control processes required for the delivery of the goods (quality control, measurement, weighing, count etc.) and the preloading examination expenses imposed by the export country. Seller, on condition that all the expense, provides the delivery evidence demonstrating the delivery of the goods to the buyer.


Buyer`s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Receives its goods in the specified date and place. From this moment on, all kinds respective risk and expenses are in the responsibility of the buyer. It is obliged to receive the documents and consents regarding import and to pay the customs tax and expenses. It pays the fee of the freight by entering into an agreement with the transport agency. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.


 

 

"Transport and Insurance Prepaid" rule expresses that the seller is to deliver the goods to a carrier or other person selected by itself at a specified point (if not such place have been agreed by the parties) and that the seller must enter into the transport agreement for bringing the goods to a specified destination point and must pay the transport expenses. When the CPT rule is used (just like in the CIP, CFR or CIF rules), seller carries out its delivery obligation not when the goods arrive at the place of destination, but when the goods are delivered pursuant to the respective rule to the carrier.

 

Characteristics of the delivery type: This type of delivery is used specifically in the forms of transport with multiple vehicles. Seller is obliged to pay the freight charge until the place of delivery. The risks and expenses at the moment it transfers the goods to the supervision of the first carrier, except for the freight, pass to the buyer. 

Seller’s Obligations: Seller prepares the goods in compliance with the agreement terms and conditions. Prepares the required documents it will be using in the Buyer’s country. Completes the customs clearances. It pays the fee of the freight for the destination point entering into an agreement with the transport agency. It is free of the respective risks and expenses at the moment it transfers the goods to the supervision of the first carrier. Seller notifies the buyer about loading that took place and the possible date of arrival. Seller, Seller must pay the respective expenses of the control processes required for the delivery of the goods (quality control, measurement, weighing, count etc.) as well as the preloading examination expenses imposed by the authorized bodies of the export country. 

 

Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Completes the customs clearances by arranging the customs documents for import. Pays the customs taxes. The risks and expenses at the moment they are transferred to the first carrier, except for the freight, pass to the buyer. The customs expenses that might occur due to transit shipment shall be borne by the buyer. It receives the bill of lading with turnover by paying the unloading charge if not included in the freight fee from the agency. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.


 

"Transport and Insurance Prepaid" rule expresses that the seller is to deliver the goods to a carrier or other person selected by itself at a specified point (if not such place have been agreed by the parties) and that the seller must enter into the transport agreement for bringing the goods to a specified destination point and must pay the transport expenses. When the CIP rule is used (just like in the CPT, CFR or CIF rules), seller carries out its delivery obligation not when the goods arrive at the place of destination, but when the goods are delivered pursuant to the respective rule to the carrier. 

 

Characteristics of the delivery type: In this type of delivery, seller undertaking the entire insurance premium, freight and loading expenses and risks brings the goods to the port that they will be loaded. Seller provides and agrees with the ship agency. Notifies the buyer that the goods in the sales agreement were loaded in the specified date and place. Seller, by paying the insurance premium, takes out a sea shipment insurance that has the narrowest coverage and that is suitable for the type of goods loaded. However, if the buyer wants an insurance against extraordinary risks (strike, war, natural disaster etc.)I it may demand the expansion of the coverage by making the payments of the respective premiums.  It is acquired by the seller by 10 % above the value of the goods. 

 

Seller’s Obligations: Seller must prepare the goods in compliance with the agreement terms and conditions. On condition that all expense and risk shall be borne by itself, it receives the required consents for the export of the goods, arranges all the documents for the export of the goods, and carries out the customs clearances. Preparation of the required documents to be used in the buyer’s country is under the seller’s responsibility. It pays the fee of the freight for the transport of the goods until the port of destination by entering into an agreement with the transport agency. Seller takes out the expenses insurance of the goods bearing the respective expenses. It must provide the buyer with the insurance policy or evidence of such insurance guaranty. It is free of the respective risks and expenses at the moment it transfers the goods to the supervision of the first carrier. As of this moment, all expenses and risks related to the goods except for the freight and insurance premium shall belong to the buyer. Seller notifies the buyer about loading that took place and the possible date of arrival.

 

Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Unloads its goods without delays by way of paying the unloading expenses and port fees at the port of arrival. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading. All the expenses after the moment of delivery other than the freight and insurance premium are paid by the buyer. Completes the customs clearances by arranging the customs documents for import. It pays all the duties, taxes, and other charges required for import of the goods as well as the expenses of customs clearances.

 

FREE ALONGSIDE SHIP (...named port of shipment)

 

"Free Alongside Ship" means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or of damage to the goods from that moment.

The FAS term requires the seller to clear the goods for export.

But, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale.

This term can be used only for sea or inland waterway transport.

 

A THE SELLER`S OBLIGATIONS

 

A1 Provision of goods in conformity with the contract

The seller must 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.

 

A2 Licences, authorizations and formalities

The seller must obtain at his own risk and expense any export licence or other official authorization and effect, where applicable, all customs formalities necessary to export the goods.

 

A3 Contracts of carriage and insurance

a) Contract of carriage

No obligation.

b)Contract of insurance

No obligation

 

A4 Delivery

The seller must place the goods alongside the vessel nominated by the buyer at the loading place named by the buyer at the named port of shipment on the date or within the agreed period and in the manner customary at that port.

 

A5 Transfer of risks

The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A4.

 

A6 Division of costs

The seller must, subject to the provisions of B6, pay 

- all costs relating to the goods until such time as they have been delivered in accordance with A4 and

- where applicable, the costs of customs formalities as well as all duties, taxes, and other charges payable upon export 

 

A7 Notice to the buyer

The seller must give the buyer sufficient notice that the goods have been delivered alongside the nominated vessel.

 

A8 Proof of delivery, transport document or equivalent electronic message

The seller must provide the buyer at the seller`s expense with the usual proof of delivery of the goods in accordance with A4.

Unless the document referred to is the transport document, the seller must assist the buyer, at the buyer`s request, risk and expense, in obtaining a transport document for the contract of carriage (a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document).

When the seller and the buyer have agreed to communicate electronically, the document referred to may be replaced by an equivalent electronic data interchange (EDI) message.

 

A9 Checking- packaging- marking

The seller must pay the costs of those checking operations such as checking quality, measuring, weighing etc., which are necessary for the purpose of delivering the goods 

The seller must provide at his own expense packaging which is required for the transport of the goods, to the extent that the circumstances relating to the transport such as `modalities`, `destination` etc., are advised to the seller before the conclusion of the contract of sale. Packaging is to be marked appropriately.

 

A10 Other obligations

The seller must render the buyer at the buyer`s request, risk and expense, every assistance to obtain documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit via any country.

The seller must provide the buyer, upon request, with the necessary information for insurance purposes. 

 

B THE BUYER`S OBLIGATIONS

 

B1 Payment of the price of the goods

The buyer must pay the price of the goods as agreed in the contract of sale.

 

B2 Licences, authorizations and formalities

The buyer must obtain at his own risk and expense any import licence or other official authorization and fulfill, where applicable, all customs formalities for the import of the goods and for their transit through any country.

 

B3 Contracts of carriage and insurance

a) Contract of carriage

The buyer must contract at his own expense for the carriage of the goods from the named port of shipment. 

b) Contract of insurance

No obligation.

 

B4 Taking delivery of the goods

The buyer must take delivery of the goods when they have been delivered in accordance with A4.

 

B5 Transfer of risks

The buyer must bear all risks of loss or damage to the goods from the time they have been delivered in accordance with A4; and from the agreed date or the expiry date of any period fixed for delivery which arise because he fails to give notice in accordance with B7, or because the vessel nominated by him fails to arrive on time, or is unable to take the goods, or closes for cargo earlier than the time notified in accordance with B7, provided that the goods have been duly appropriated to the contract, i. e. clearly set aside or otherwise identified as the contract goods.

 

B6 Division of costs

The buyer must pay :

-all costs related with the goods from the time they have been delivered in accordance with A4,

-the additional costs incurred because the vessel nominated by him has failed to arrive on time, or is unable to take the goods, or closes for cargo earlier than the time notified in accordance with B7, or because he fails to give notice in accordance with B7, provided that the goods have been duly appropriated to the contract, i. e. clearly set aside or otherwise identified as the contract goods.

-Where applicable, all duties, taxes and any other charges as well as the costs of carrying out customs formalities payable upon import of the goods and for their transit via any country.

 

B7 Notice to the seller

The buyer must give the seller sufficient notice of the vessel name, loading port and required delivery time.

 

B8 Proof of delivery, transport document or equivalent electronic message

The buyer must accept the proof of delivery in accordance with A8.

 

B9 Inspection of the goods

The buyer must pay the costs of any pre-shipment inspection, except when such inspection is mandated by the authorities of the country of export.

 

B10 Other obligations

The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse costs and charges paid by the seller in assisting him in accordance therewith.

 

"Free on Board" rule means that the seller’s goods are delivered in the specified loading port, on the ship selected by the buyer or by supply the goods that are delivered this way. This rule may not be suitable for the circumstances   where the seller delivers the goods to a carrier before being loaded to the ship. For example, it is natural to be delivered this way when the goods are in containers. In such cases, FCA rule must be used.

Characteristics of the delivery type: In this type of delivery, seller conducts the loading on the ship on the specified date and in the specified location. All kinds of damages, losses, and expenses that might occur after the goods pass the rails of the ship are in the responsibility of the buyer. Seller prepares the entire document required for the export and delivers after completing the customs clearances of the goods.

Seller’s Obligations: Seller prepares the goods in compliance with the agreement terms and conditions. conducts the loading on the ship provided by the buyer on the specified date and in the specified location. Seller does not have an obligation against buyer for entering into a transport agreement and insurance agreement. Prepares the required documents it will be using in the Buyer’s country and completes the customs clearances. Notifies the buyer regarding the fact that the goods are embarked. Prepares the arranged transport document required other documents buyer will be using in its country and sends to the buyer in accordance with the payment types. All kinds of damages, losses, and expenses that might occur until the goods pass the rails of the ship are in the responsibility of the seller. As applicable, it must pay expenses for the required customs clearance transactions and all the duties, taxes, and other charges required for export.

 

Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Completes the customs clearances by arranging the customs documents for import. Pays the customs taxes. It pays the fee of the freight by entering into an agreement with the transport agency. All kinds of damages, losses, and expenses that might occur after the goods pass the rails of the ship are in the responsibility of the buyer. As applicable, it must pay all the duties, taxes, and other charges required for import of the goods as well as the expenses of customs clearances and the expenses of the transit of the goods in any country. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading. "Free Toward Ship” rule expresses that seller leaves the goods at a designated loading port toward the ship selected by the buyer (for example on a wharf or boat) and conducts the delivery. In the events where the goods are in containers, it is natural that the seller delivers the goods not in the direction of the ship but in a terminal and to a carrier. In such cases, this rule is not appropriate and the FCA rule must be used.

Characteristics of the delivery type: In this type of delivery, seller is obliged to bring the goods beside the ship. Goods are delivered by bringing to the loading spot if the ship is anchored at the wharf or by taking them to the ship on boats if the ship is anchored wide at sea. As of the delivery, loss and damages of the goods belongs to the buyer. As of this moment, all the expenses and freight regarding the goods are borne by the buyer. In this type of delivery, all the documents of export are prepared by the buyer. Customs clearances are also conducted by the buyer. If the buyer firm cannot act in this country as an exporter, this type of delivery must not be selected.

 

 

Seller’s Obligations: Seller prepares the goods pursuant to the agreement terms and conditions. In the event that the buyer so-demands, on condition that all the expenses and risks shall be borne by the buyer, it assists buyer to receive the required documents and similar administrative and commercial documents that are mandatory in the buyer’s country. Seller does not have an obligation against buyer for entering into a transport agreement and insurance agreement. Completes the delivery by bringing the goods at the specified port, on the specified date beside the ship determined previously by the buyer. As of this moment, all the expenses and risk regarding the goods pass to the buyer. In the event that the buyer so-demands, on condition that all the expenses and risks shall be borne by the buyer, the seller ensures that the bill of lading is arranged and sends to the buyer in order to receive the goods at the place of destination. Conducts the required notification without delay. As applicable, it must pay expenses for the required customs clearance transactions and all the duties, taxes, and other charges required for export.

Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Prepares respective documents required for export and import and pays all the customs expenses. Agrees with the transport agency and notifies the place of arrival of the ship to the loading port. Receives the goods that are kept ready for the loading order. As of this moment, all the expenses and risk regarding the goods pass to the buyer. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.

 

 

"Expenses and Freight" rule expresses the delivery of the goods by the seller on the ship or procure the goods that have already been delivered this way. This rule may not be suitable for the circumstances where the seller delivers the goods in the terminal prior to loading onto the ship to a carrier. For example, it is natural to be delivered this way when the goods are in containers. In such cases, CPT rule must be used., When the CFR rule is used (just like in the CIP, CPT or CIF rules), seller carries out its delivery obligation not when the goods arrive at the place of destination, but when the goods are delivered pursuant to the respective rule to the carrier.

 

Characteristics of the delivery type: In this type of delivery, seller undertaking all the expenses and risks brings the goods to the port that they will be loaded. Conducts the customs clearance and realizes the loading by paying the freight charge. As of this moment, all the expenses and risk regarding the goods out of the freight pass to the buyer.

 

Seller’s Obligations: Seller prepares the goods in compliance with the agreement terms and conditions. Prepares the required documents it will be using in the Buyer’s country. Completes the customs clearances. It pays the fee of the freight for the destination point entering into an agreement with the transport agency. Seller must enter into a transport agreement, on condition that all the expenses shall be borne by itself, for the carriage of the goods to the designated port. Seller does not have an obligation to make an insurance agreement. After the goods pass the ship’s rail, all the expenses and risks that occur out of the freight shall be borne by the buyer. Seller notifies the buyer about loading that took place and the possible date of arrival. Sends the arranged transport document and other required documents to the buyer. 

 

Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Completes the customs clearances by arranging the customs documents for import. Pays the customs taxes. Unloads its goods without delays by way of paying the unloading expenses and port fees at the port of arrival. It must pay all the expenses that have been spent for the goods during the transport except for the freight. As applicable, it must pay all the duties, taxes, and other charges required for import of the goods as well as the expenses of customs clearances and the expenses of the transit of the goods in any country on condition that they are not within the scope of the transport agreement. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.

 

"Expenses, Insurance and Freight" rule expresses the delivery of the goods by the seller on the ship or procure the goods that have already been delivered this way. This rule may not be suitable for the circumstances where the seller delivers the goods in the terminal prior to loading onto the ship to a carrier. For example, it is natural to be delivered this way when the goods are in containers. In such cases, CIP rule must be used...
When the CIF rule is used (just like in the CIP, CPT or CFR rules), seller carries out its delivery obligation not when the goods arrive at the place of destination, but when the goods are delivered pursuant to the respective rule to the carrier.


Characteristics of the delivery type: In this type of delivery, seller undertakes the insurance premium, freight and loading expenses and risks, and brings the goods to the port where they will be loaded. Seller provides and agrees with the ship agency. Notifies the buyer that the goods in the sales agreement were loaded in the specified date and place. Seller, by paying the insurance premium, takes out a sea shipment insurance that has the narrowest coverage and that is suitable for the type of goods loaded. After the goods are loaded on the ship, expenses and risk other than the freight and insurance premium pass to the buyer.

Seller`s Obligations: Seller prepares the goods in compliance with the agreement terms and conditions. Prepares the required documents it will be using in the Buyer`s country. Completes the customs clearances. Seller must enter into a transport agreement and insurance agreement, on condition that all the expenses shall be borne by itself, for the carriage of the goods to the designated port. It pays the fee of the freight for the destination point entering into an agreement with the transport agency. Takes out the insurance of the goods it has send and pays the insurance premium. Notifies the buyer about the approximate arrival of the goods in the arrival port. Sends the arranged transport document and other required documents to the buyer. As applicable, it must pay expenses for the required customs clearance transactions of export and all the duties, taxes, and other charges required for export.

Buyer`s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Completes the customs clearances by arranging the customs documents for import. Pays the customs taxes. Unloads its goods without delays by way of paying the unloading expenses and port fees at the port of arrival. It must pay all the expenses that have been spent for the goods after the moment of delivery except for the freight and insurance premium. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.

 

“Delivery at Terminal" rule expresses that the seller leaves the goods unloaded from the transport vehicle in a terminal at the location or port to the buyer’s disposal. The word of terminal covers all the places that can be open and covered like wharfs, warehouses, container sites, or roads, railroad or air cargo stations. If the parties aim at the carriage of the goods from the terminal elsewhere and handled and at having the respective undertaken by the seller, DAP or DDP rules must be used. 

 

Characteristics of the delivery type: it expresses that the goods are provided to the buyer at the destination point to be unloaded by the transport vehicle (delivery), replacing the previous DEQ clause, and, contrary to DEQi, could be used for multimodal (multiple vehicles). DAT, in other words, is the unloading of the commodities in the terminal point designated by the buyer and the seller (this point can be a port or customs warehouse or buyer’s factory) being the expenses of unloading are borne by the seller and left for the order of the buyer. All customs clearances, expenses, duties, tolls and charges are borne by the buyer. Among the terms removed, DAF, DES and DDU were carried out. The goods’ costs of transport to the specified place / terminal connected damage risks are undertaken by the seller. 

 

Seller’s Obligations: Seller must prepare the goods in compliance with the agreement terms and conditions. On condition that all expense and risk shall be borne by itself, it receives the required consents, required for the export of the goods and the required customs clearances for the transiting of the goods from another country. Seller must enter into a transport agreement, on condition that all the expenses shall be borne by itself, for the carriage of the goods to the designated port. Seller does not have an obligation to make an insurance agreement against the buyer. Seller must unload the goods in the agreed terminal and on the agreed date at the place of destination from the incoming transport vehicle and leave at the disposal of the buyer. If there is no certain port agreed upon, seller may select the most suitable terminal for the destination and for its own objectives. Seller, until the time they are correctly delivered, must pay all the expenses, as applicable, and prior to the delivery of such goods as mentioned above all the duties, taxes, and other charges required for import of the goods as well as the expenses of customs clearances and the expenses of the transit of the goods in any country. 

 

Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. As applicable, the buyer, on condition that it shall bear the damages and expenses, must receive all kinds of import permits or other official consents and complete all customs clearances for the import of the goods. As of the moment the goods are delivered as mentioned above, all expenses regarding these goods are in the responsibility of the buyer. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.

 

“Delivery at Place" rule expresses that the seller delivers the goods without unloading the transport vehicle visiting the designated destination leaving it for the disposal of the buyer. 

Characteristics of the delivery type: means the supply of the goods to be emptied by the transport vehicle to the buyer at a specified spot (delivery). DAP replaces the previous DAF, DES, and DDU. In other words, DAP is the abandonment of the commodity at an unloading spot specified by the buyer and seller (a port dock, customs point, airport) being ready for unloading on the shipment vehicle. All customs clearances, expenses, duties, tolls and charges belong to the buyer. The goods’ costs of transport to the specified place / terminal connected damage risks are undertaken by the seller. 

Seller’s Obligations: Seller must prepare the goods in compliance with the agreement terms and conditions. On condition that all expense and risk shall be borne by itself, it receives the required consents, required for the export of the goods and the required customs clearances for the transiting of the goods from another country. Seller must enter into a transport agreement, on condition that all the expenses shall be borne by itself, for the carriage of the goods to the designated terminal. Seller does not have an obligation to make an insurance agreement against the buyer. Seller must deliver the goods on an agreed date, at the place of destination, at an agreed point, if any, the incoming transport vehicle being ready for unloading, at the disposal of the buyer. Seller, until the time they are correctly delivered, must pay all the expenses, as applicable, and prior to the delivery of such goods as mentioned above all the duties, taxes, and other charges required for import of the goods as well as the expenses of customs clearances and the expenses of the transit of the goods in any country. 

 

Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. As applicable, the buyer, on condition that it shall bear the damages and expenses, must receive all kinds of import permits or other official consents and complete all customs clearances for the import of the goods. As of the moment the goods are delivered as mentioned above, all expenses regarding these goods are in the responsibility of the buyer. Except for the circumstances where such expenses shall be borne by the seller pursuant to the transport agreement, in order to deliver the goods to the specified destination, it pays the expenses of unloading the transport vehicle. As applicable, all the tolls, taxes, and other charges for the import of the goods shall be paid by the buyer. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.

 

"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.

 

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