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This article covers the delivery of FCL goods under DAP and DDP Incoterms rules.
Delivery of the goods is “not unloaded” by the seller at the destination place, typically at either the CY (container yard) or the buyer’s premises.
If at the CY then the seller has delivered when the goods inside the container arrive into that CY and terminal handling charges (THC) from that point onwards are for the buyer. The buyer must import clear and will then arrange to take the FCL from the CY.
Delivery at the buyer’s premises is more complex. The seller not only pays for carriage to the CY, but also THC while waiting for the buyer to import clear. Then the seller’s carrier (no doubt via their local office/agent) again takes physical possession of the container from the terminal and brings the container to the buyer’s premises.
Once the buyer has unloaded the container, the seller’s carrier must return the empty to the terminal, all at the seller’s expense. What if the buyer has a delay in import clearance resulting in the seller incurring terminal storage charges and container detention charges? Or the buyer takes longer than the trucker’s free time for unloading the container? Ideally, these possibilities should already be dealt with in the sales contract.
Want to find out more about Incoterms® Rules 2020?
We have summarised the 11 Incoterms which have recently been revised by the ICC Incoterms Drafting Committee for 2020.
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