The International Chamber of Commerce (ICC) is an organization originally created after the First World War to promote Europe`s prosperity by setting standards for international trade. It was this group that, in 1936, published a series of standardized terms for different types of maritime contracts, known as Incoterms. DAP fees are set and can be 3-4 times cheaper than DDU brokerage fees. The main consideration for DDP conditions is that the seller is responsible for customs clearance in the buyer`s country, including payment of duties and taxes, and obtain the necessary authorizations and registrations from the authorities of that country. If the rules and regulations are not well understood in the buyer`s country, the terms DDP can present a very high risk, both in terms of delay and unforeseen extra costs, and should be used with caution. Incoterms 2020 also formally defines delivery. Previously, the term had been informally defined, but is now defined as the point of the transaction, in which “the risk of loss or damage [of the merchandise] passes from the seller to the buyer.” [9] Under this rule, no one can prohibit you from using the old Incoterms. But let`s not overlook the DDU of shipping – import and export companies that work under license and regularly receive a large number of shipments prefer DDU. We fully understand the provisions of the DDU shipping and are ready to execute them in good conscience. The seller pays to transport the goods to the designated destination.

However, the goods are deemed to be delivered when the goods have been delivered to the first or main carrier, so that the risk is transferred to the purchaser when the goods are delivered to that carrier at the place of shipment in the country of shipment. To find out if a site is suitable for these four rules, see the Code for Trade and Transport Locations (UN/LOCODE). [18] CPT replaces the C-F (costs and freight) and CFR conditions for all types of shipments outside non-containerized marine cargo.