FAQ's
The D-terms – The buyer leaves most things to the seller
The terms of sale can be thought of as sitting on a sliding scale of responsibilities, which are split between buyers and sellers according to the Incoterms Rules. At one end, risk and cost are loaded toward the buyer, and at the other end, they fall more with the seller.
Finally, with the D-terms (DAP, DPU, and DDP), the seller retains the risk of loss or damage throughout the transit until the goods are delivered to the buyer at the agreed-upon place.
This term is suitable for most kinds of goods carried by road, rail, air, sea, or inland waterway (or any combination of these).
The main carriage is arranged and paid for by the seller up to the named place, and risk does not transfer from the seller to the buyer until the goods are ready for unloading from the conveyance at the named place. This is typically in the country of destination and often at or relatively close to the buyer’s premises.
Therefore, the risk transfer point is the same as the named place, and it is prudent for the seller to arrange insurance for their own benefit during the main carriage.
This term is suitable for most kinds of goods carried by road, rail, air, sea, or inland waterway (or any combination of these).
The main carriage is arranged and paid for by the seller up to the named place, and risk does not transfer from the seller to the buyer until the goods are unloaded from the conveyance at the named place. This is typically a carrier’s terminal in the country of destination and prior to the last leg of the journey.
Therefore, the risk transfer point is the same as the named place, and it is prudent for the seller to arrange insurance for their own benefit during the main carriage.
This term is suitable for most kinds of goods carried by road, rail, air, sea, or inland waterway (or any combination of these).
The main carriage is arranged and paid for by the seller up to the named place, and risk does not transfer from the seller to the buyer until the goods are ready for unloading from the conveyance at the named place. This is typically in the country of destination and is often at or relatively close to the buyer’s premises.
Therefore, the risk transfer point is the same as the named place, and it is prudent for the seller to arrange insurance for their own benefit during the main carriage.
The seller, or typically their freight forwarder, is also required to arrange import clearance of the goods into the country of destination.
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