After the examination of the Incoterms - E category, F category and C category -, find our expert's analysis of the last category of Incoterms, the "D Category":
« D category »: No changes are expected on the DAT (Delivered on the loaded mode of transportation at the named place of destination) and DAP (mode of transportation not unloaded at the named place of destination). No changes are expected for the DDU (delivered duty unpaid in the country of destination, all costs and risks borne by the seller) either.
With DDP, the seller has the highest possible level of obligation in terms of international streams. It is the complete opposite of EX WORKS, and just like it, it is being seriously challenged. The fact that it is scarcely used in international trade, and still in use for domestic trade (i.e. outside the realm of the Incoterms), supports the move to take it out.
At this stage in the talks, the Incoterms writers prefer a potential DTP (delivery at terminal in the port of destination, duty paid in the country of destination) to the DDP. This would allow immediate release for consumption by the buyer as soon as the goods exit the Maritime or Air Terminal, and until it reaches the final port or airport of destination. A potential DPP (delivery to named location, duty paid in the country of destination) would supplement the DTP to cover the whole spectrum of the “former” DDP.
Key point: DTP and DPP will very likely take the place of the DDP.
Photo credit: Image by Marcus Trapp from Pixabay
Infography: xi-graphisme.com
