DDP service in Russia
DDP (Delivered Duty Paid) – the term of delivery, which means that the seller delivers the goods to the buyer, when the goods are cleared for import and are placed at the disposal of the buyer in the means of transport ready for unloading at the named place of destination. The seller bears all the risks and responsibilities for the goods until the goods are delivered to the buyer. The seller pays all transportation costs and duties and has an obligation to clear the goods not only for export, but also for import in the country of the buyer. DDP represents the maximum obligations for the seller.
It is impossible for a foreign company in Russia to fulfill their obligation to clear the goods for import according to DDP term, as the foreign company does not have the right to perform customs operations (and pay import duties) according to the Russian legislation (see Customs Code of the Russian Federation, Clause 16, Point 1). At the same time Russian companies, as the buyers, may stand on DDP term if they do not want or are not able to fulfill the import customs clearance.
The best way to meet the requirements of the buyer on import customs clearance and to observe the law is to involve a third party (a Russian agent) in the deal (see pic.1. below). In such a scheme a tripartite agreement is drawn up between the three parties: the Seller, the Importer (Russian agent), and the Buyer. The Importer makes the payment for the goods to the Seller on DDU terms, and the Seller delivers the goods to the Buyer. The Importer fulfills customs clearance and pays all customs duties for the Buyer. All the expenses of the Importer are compensated by the Buyer.
Intersolution company will serve you as the Importer in the tripartite agreement in order to meet the requirements of the Buyer on DDP term. We will make the necessary payments and prepare all the documents for customs clearance of goods in Russia, as well as control the process to be sure that all the parties meet their obligations.
