Tuesday, July 03, 2007

Trade Terms -Group D

*Delivered at Frontier(DAF)(...named place)
Under the "Delivered at Frontier" term, the seller's obligations are concluded when the goods, cleared for export, have arrived at the named forntier place but before the customs border of the adjoining coutry.The seller must fund all transport costs (including incident charges raised during the transit) and bear all the risk up to the nominated forntier point.This term requires the seller to clear the goods for export and provide the buyer with the necessary documentation to enable the buyer to take delivery of the cargo.
The buyer meets the risk and customs and other costs incurred from the time the goods have been placed at the buyer's disposal at the specified frontier point. He must obtain at his expense any import license and other documentationo required to process the cargo through importation. This term is primarily used for rail or road transport,but it may also be used for other transport modes.

*Delivered Ex Ship (DES)(...named port of destination)
This term obliges the seller to make the goods available to the buyer on board the vessel at the destination port as specifed in the sales contract. The seller has to bear all the cost and risk involved to bring the goods to the destination port. The seller should inform promptly the buyer of the name of the vessel and the expected date of arrival of the vessel and provide the buyer with a Bill of Lading ,Commercial Invoice and any other documents necessary to enable the buyer to take delivery of the consignment.
The buyer bears all the risk and expense from the time the cargo has been placed at the disposal of the buyer on board the vessel awaiting discharge at the destination port. The buyer is responsible for the unloading of the goods. He has to obtain at his expense all licenses or similar documents necessary for the importing process and bear all customs charges and other duties and taxes incurred at the time of importation.DES can only be used for sea and inland waterway transportation.

*Delivered Ex Quay (DEQ) (Duty paid)(...named port of destination)
DEQ is applied to water transport only. Under this term the seller arranges for the goods to be made available to the buyer on the quay or wharf at the destination port detailed in the sales contract.The seller has to bear the full the cost and risk involved to bring to goods to the quay.The seller should provide any pay for any import license and bear the unloading charges,import duties and other taxes incurred at the time of importation.This term should not be used if the seller is unable to obtain directly or indirectly the import license.
The buyer bears all the expense and risk of the goods from the time the cargo has been effectively placed at the disposal of the buyer.The buyer can also provide the seller on request and at the seller's expense assistance to obtain import license or other governmental authorization.Normallym"Duty Paid" is marked after "DEQ". If it is mutually agreed that the liability to clear the goods for import is met by the buyer,'Duty Unpaid" should be marked ( clearly indicated).

*Delivered Duty Unpaid (DDU) (...named place of destination)
Under the DDU Term ,the seller fulfills his obligations when the goods have arrived at the named point or place in the country of importation.The seller has to bear all the costs and risk involved in bringing the goods to the names destination point,excluding duties,taxes and other officail charges payable upon importation.If the parties agree that the seller bears some of the cost or official charges incurred upon import of the goods such as Value Added Tax (VAT),this should be clearly marked to this effect " Delivered Duty Unpaid,VAT paid).This term can be used for any mode of transport.

*Delivered Duty Paid (DDP)(...named of destination)
The term " Delivered Duty Paid" places the maximum obligation on the seller regarding the cargo dispatch arrangements. Uner such a term, the seller is responsible for the conveyance of the goods at his own risk and expense to the named destinatiuon located in the buyer's country. This includes the task of processing the cargo through both exportation and importation including duties and taxes plus customs clearance,loading and unloading,together with the related documentation.The seller may use his own transport throughout the conveyance.
The buyer's role is to accept the goods at the named place of destination and he is resposible for all the subsequent cost of the goods including handling. The buyer has the minimum obligation under this term. This term should not be used if the seller is unable to obtain directly or indirectly the import license.If the parties wish that the buyer should clear the goods for import and pay the duty, the term DDU should be adopted.

No comments: