Incoterms 2010 vs ICC-2009

Take a look at the two “D” group Incoterms of 2010, DAP & DDP. Under DAP, seller’s responsibility includes clearing the goods for export, freight and making available the goods at the named place ready for unloading. Risk transfer happens at this point and unloading is NOT seller’s responsibility. In case of DDP, apart from the above, seller has the responsibility to clear the goods for import, pay duties and handle all the customs formalities in the buyer’s country. Again unloading is not seller’s responsibility. Insurance is not seller’s obligation in both the cases, though the seller in all probability would purchase insurance.

If the insurance policy is subject to ICC 2009, the Duration clause could create some confusion. 8.1.1 states that the cover under the policy would cease ‘ when the goods are unloaded from the carrying vehicle or conveyance..’. The seller does not have the responsibility to unload in case of DAP & DDP. This would mean that should there be a loss during unloading, the policy would respond, notwithstanding the fact that unloading was carried out by the buyer/ his agents. In ICC 1982, the phrase used was “ delivered to the consignee..” and hence unloading risk in case of DAP/ DDP shipments would have been squarely on the buyer.