DDP Incoterms 2020: Delivered Duty Paid Explained · Контракт.Онлайн
Incoterms 2020 · group D — arrival

DDP — Delivered Duty Paid: delivery terms under Incoterms 2020

Under the Incoterms rules the seller delivers the goods and pays import duties. But on importation into Russia the declarant and payer of customs payments is the Russian party (Article 83 of the EAEU Customs Code)

What you are drafting
Import of goods on DDPExport of goods on DDP DOCX
КОНТРАКТCONTRACTMoscow
1. Предмет Контракта 2. Стоимость Контракта 3. Условия поставки 4. Условия оплаты 5. Гарантии и качество 6. Ответственность сторон 7. Арбитраж
1. Subject of the Contract 2. Cost of Contract 3. Terms of the Delivery 4. Terms of the Payment 5. Guarantee and Quality 6. Liability of the Parties 7. Arbitration
ПРОДАВЕЦ / THE SELLERПОКУПАТЕЛЬ / THE BUYER
ПРИЛОЖЕНИЕ № 1 к КОНТРАКТУANNEX No. 1 to CONTRACTСПЕЦИФИКАЦИЯ · SPECIFICATION
На поставку Товаров, на общую сумму
# Описание / Description ТН ВЭД / HS CODE Ед. изм. / Unit of meas. Кол-во / Q-ty Цена / Price Сумма / Total 1 2
Прочие условия / Other terms Гарантия / Warranty Документация / Documentation Условия поставки / Delivery terms Порядок оплаты / Terms of payment Период оказания услуг / Period of provision of services Срок возврата оплаты / Period of refund of payment
ПРОДАВЕЦ / THE SELLERПОКУПАТЕЛЬ / THE BUYER
Ready in 15 minutes · DOCX · 2 990 ₽
Fill in: Import of goods Fill in: Export of goods
D
group of terms
Any
mode of transport
Seller
export clearance
Seller
pays for carriage
Russian buyer
declarant on import into Russia

What the draft already fills

Parties, documents and specifics for every deal scheme

Import of goods on DDP

PartiesBuyer — Russia, seller — foreign company
Delivery termDDP + place of destination
DocumentsInvoice, packing list, declaration, waybill
SpecificsHS code · Supplier's SWIFT details

Export of goods on DDP

PartiesSeller — Russia, buyer — foreign company
Delivery termDDP + place of destination
DocumentsInvoice, packing list, declaration, waybill
SpecificsAdvance refund if delivery fails · HS code in the specification

How to write DDP into the contract

The DDP term is passed into the form from this page

1
1. Deal type

Import or export of goods. Parties, goods with HS codes and prices go into the same form; the Russian party's details are filled in from its INN (taxpayer number).

2
2. DDP and place

DDP is already selected. Enter the place of destination: the address to which the seller delivers the goods. The delivery terms in the specification will be built for DDP.

3
3. Preview and DOCX

You see the whole document before paying: the English and Russian columns, the specification, the delivery term. After payment you get the DOCX.

A contract on DDP terms

An Incoterms rule applies to the delivery of goods — import or export

Who does what under DDP

Risk passes when the goods, cleared for import, are on the arriving transport ready for unloading at the place of destination

Obligation
Seller
Buyer
Loading at the place of dispatch
Yes
—
Export customs clearance
Yes
—
Main carriage
Yes
—
Cargo insurance
Optional: risk in transit lies with the seller
—
Unloading at the destination
—
Yes
Import clearance, duties and taxes
Yes
—

DDP in a contract: what to specify

A delivery term without an exact place and without the conditions around it does not work well

✓Code and edition: “DDP [place], Incoterms® 2020” — without the year it is unclear which rules apply
✓Precise place of destination: the address to which the seller delivers the goods
✓Mode of transport: any
✓Deadline for notice that the goods are ready for shipment
✓Transfer of title — Incoterms does not govern it; the contract ties it to the moment of delivery
✓Insurance: Incoterms does not require it; decide between yourselves who insures
✓Payment terms and the deadline for refunding the advance if there is no delivery
✓Documents the seller hands over: invoice, packing list, transport document

Questions about the DDP term

Meaning, risk, costs, title

DDP stands for Delivered Duty Paid. The seller has the maximum obligations: it carries the goods to the place of destination, clears export and import customs and pays import duties and taxes. The buyer only unloads. Risk passes when the goods, cleared for import, are on the arriving transport ready for unloading at the place of destination. On importation into Russia, the declarant and payer of customs payments will still be the Russian buyer — subparagraph 1 of paragraph 1 of Article 83 of the EAEU Customs Code.
Import customs. Under DAP import clearance, duties and taxes are the buyer's; under DDP they are the seller's. Delivery to the place of destination and the moment risk passes are the same under both rules.
Under the Incoterms rules, the seller: DDP places on it the duties and taxes payable on importation. But on importation into Russia only the Russian party can be the declarant in a deal with a foreign person (subparagraph 1 of paragraph 1 of Article 83 of the EAEU Customs Code), and customs payments are made by the declarant. So the buyer pays, and the seller can only reimburse these amounts under the contract. For importation into Russia, DAP describes the parties' obligations more accurately.
Incoterms does not govern the transfer of title — the rules deal only with delivery, risk and costs. The moment title passes is set by the contract or the applicable law; under Russian law (Article 223 of the Russian Civil Code), ownership arises from the moment the thing is handed over, unless the contract provides otherwise. In our contract title passes together with risk — at the moment of delivery under DDP.
The rule code, the precise place of destination and the edition of the rules, for example: DDP Almaty, 5 Abay Avenue, Incoterms® 2020. Under paragraph 6 of Article 1211 of the Russian Civil Code, if the contract uses a trade term accepted in international commerce, the parties are deemed to have agreed on the customs that the term denotes — so it is better to name the edition expressly.

A contract on DDP terms — 2 990 ₽

The preview of the whole document is free: you see both columns in full and pay only if it suits you. No subscription, no registration.

✓ DOCX · Word / LibreOffice
✓ Bilingual EN/RU
✓ 173-FZ · CISG · Incoterms 2020
2 990 ₽
per document
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DDP Incoterms 2020 — delivery terms

DDP in plain words

DDP is the rule with the maximum obligations for the seller: under the Incoterms rules the buyer receives the goods already cleared at its end. For importation into Russia this conflicts with customs rules: the Russian party will declare the goods and make customs payments — only it can be the declarant in a deal with a foreign supplier (subparagraph 1 of paragraph 1 of Article 83 of the EAEU Customs Code). If the parties want the supplier ultimately to bear the import costs, this is handled through the price and reimbursement under the contract, and the more accurate rule to choose is DAP.

How DDP is written in our contract

The delivery term is set out in Annex No. 1 (Specification) in English and Russian. The English column for this term:
DDP [place]
Delivery and transfer of risk: The Seller has fulfilled its delivery obligation when it places the Goods, cleared for import, at the Buyer's disposal on the arriving means of transport, ready for unloading, at the named place of destination ([place]). The risk of loss of or damage to the Goods and the title to the Goods pass from the Seller to the Buyer at that moment.
Costs: The Seller bears the costs of carriage to the named place of destination ([place]), export and import clearance, including the duties and taxes payable on importation. The Buyer bears unloading.
Customs clearance: export and import clearance, duties and taxes are the Seller's obligation. At the Seller's request, cost and risk the Buyer renders assistance in obtaining the documents required for importation.
On importation into Russia, the declarant and payer of customs payments will be the buyer as a party to the deal — keep this in mind when choosing DDP.

DDP and customs value on import

Under DDP the seller pays for carriage and includes it in the price of the goods. If the place of destination is inside Russia, part of these costs falls on the leg across the territory of the Eurasian Economic Union. Under paragraph 2 of Article 40 of the EAEU Customs Code, such costs are not included in the customs value — provided that they are separated from the price, declared by the declarant and supported by documents. It is therefore better to show the cost of delivery beyond the border as a separate amount in the supplier's documents.

All terms: Incoterms 2020 · EXW · FCA · FAS · FOB · CPT · CIP · CFR · CIF · DAP · DPU. See also: import contract, export contract.