Australia
Hong Kong
Japan
Singapore
United Arab Emirates
United States
France
Germany
Ireland
Netherlands
United Kingdom
The usual answer is because delivery occurs, and risk transfers, when the goods leave the seller’s direct control, such as when the goods are loaded into the container at the seller’s premises or at the CFS or CY, long before the goods go on board. This would be the case with FCA, CPT and CIP.
Traditionally each rule has repeated all ten of the obligations for each of the seller and buyer. Most of them are identical or near-identical across each rule, and for some, the variations hang off the delivery obligation.
For FAS, delivery is when the goods are placed alongside a vessel which must logically be present at that point. This can be on the quay beside the vessel, or on a barge beside the vessel.
We have DAP Delivered At Place (not unloaded) and DPU Delivered at Place Unloaded with in both cases the buyer import clearing. Then we have a step beyond DAP with DDP Delivered Duty Paid, with identical delivery but the seller is responsible for import clearance and VAT/GST.
Delivery is identical to that in DAP. The danger of DDP is in the requirement that the SELLER must import clear.
Delivery of the goods is “not unloaded” by the seller at the destination place, in this case the port of discharge. That means that the buyer needs to be able to unload the vessel at its own risk and cost.
It would be unusual but possible that delivery by road would be to a terminal for the buyer to then collect.
With DPU Destination Terminal for railfreight the goods are indeed unloaded from the railcar at the terminal as part of the seller’s contract of carriage.
Delivery of the goods is “unloaded” by the seller at the destination place, in this case the port of discharge.
Delivery of the goods is “not unloaded” by the seller at the destination place. It would be unusual that delivery by road would be to a terminal for the buyer to then collect.
Delivery of the goods is “not unloaded” by the seller at the destination place. There is however a problem with DAP Airport
Delivery of the goods is “not unloaded” by the seller at the destination place. There is however a problem with Delivery at Paid (DAP) Container Freight Station (CFS).
The current Incoterms 2020 rules, like those in previous versions before them, are entirely devoid of any clue to assist the very people they are all about – the seller and the buyer.
In CPT/CIP, the seller’s obligation is to deliver the goods to its own carrier on the agreed date or within the agreed period. See my earlier post on delivery for CPT/CIP.
As with all eleven of the Incoterms 2020 rules, risk transfers from the seller to the buyer instantly at delivery. I explained a few days ago the variability of “delivery” which is not mentioned in the wording of these two rules, conveniently for the lawyers but most inconveniently for the actual traders and their logistics people.
