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NGJ DAT/DAP - DDP Services Policy - Norman G. Jensen

NGJ DAT/DAP - DDP Services Policy - Norman G. Jensen

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<strong>NGJ</strong> Export Freight <strong>Services</strong> Policies (40 series) Page 3<br />

Effective Date: TBA Revision: Original<br />

Definitions<br />

Free domicile<br />

www.gistnet.com<br />

A TERMS OF SALE definition under AMERICAN FOREIGN TRADE DEFINITIONS and previous versions<br />

of INCOTERMS. Under free domicile terms, the seller has complete responsibility for delivering<br />

the goods to the buyer at the buyer's facility. That is, the seller must arrange all needed<br />

transportation and CUSTOMS CLEARANCE, bear all costs up to the buyer's door, including<br />

CUSTOMS DUTY if any, and bear all risks of cargo loss or damage until the buyer accepts the<br />

goods.<br />

Beginning with Incoterms 1990, "free domicile" was replaced with <strong>DDP</strong> or DDU, depending on<br />

whether the seller or buyer is responsible for paying arranging the CUSTOMS CLEARANCE into the<br />

destination country, and paying the CUSTOMS DUTY, if any.<br />

Incoterms 2010 replaced the term "DDU" with the more encompassing term <strong>DAP</strong>, which may<br />

define the delivery point as the consignee's facility provided customs clearance can be<br />

accomplished by the consignee at that point, or else some other point at which consignee can<br />

accomplish customs clearance. (<strong>DDP</strong> remains unchanged in Incoterms 2010).<br />

Free house<br />

www.gistnet.com<br />

An informal expression of DELIVERY TERMS referring to <strong>DDP</strong> or FREE DOMICILE.

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