DDP Incoterms 2020: Meaning & Explanation
This page is designed to provide a basic level of understanding of Incoterms ® 2020 Rules published by the International Chamber of Commerce (ICC)
Incoterms 2020
EXW Ex Arbeite FCA Frei Träger FAS Frei Längsseite Schiff FOB Free on Board CFR Preis und Fracht CIF Kosten, Versicherung und Fracht CIP Fracht und Versicherung bezahlt DAP Geliefert am Ort DPU Delivered Named Place Unloaded DDP Geliefert verzolltIncoterms 2010
DAT Geliefert am TerminalDDP — Delivered Duty Paid
The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient, import duty paid and cargo ready for unloading at the indicated destination. DDP clause implies maximum obligations for the shipper, as opposed to EXW clause, where all shipping responsibilities are placed on the recipient. Recipient assumes only the unloading of goods on the spot and insurance of the goods at will. All other costs are transferred to the supplier (export and import payments, costs of transportation of goods) DDP is used to transport goods by any means of transport.
Who covers the logistics charges?
Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.
