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Follow on Google News | Why telecommunication operators in Africa still buy DDU from radio vendors such as Ericsson?“Delivered Duty Unpaid” means that the seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport
By: John Seefour / AllForSite This leads to some awkward situations where the shipment of for example a switch costs 10 times the price of the same shipment in CFR/CPT (e.g. around 40K€ instead of 4K€ for the shipment of a 40FT container to the same destination) Some radio vendors will argue that this fee also covers the work of their transit agent at destination… The strict definition of DDU is the following (Source ICC: http://www.iccwbo.org/ However, if the parties wishes for the seller to carry out customs formalities and bear the costs and risks resulting there from as well as some of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sales”. Therefore, when it comes to importing some BTS, RBS, node B, switches, or other microwave equipments, we recommend telecom operators to negotiate an EXW price in order to stay in control of their logistics costs, even if at the end they buy CFR or CPT. If they buy DDU, they should set a clear responsibility matrix detailing what they are paying for. They should leave the responsibility and costs of the transit up to the seller by making it clear in the contract; otherwise, there is no added value to buy DDU, just extra costs. Finally, if the seller is also in charge of the installation and promote a “DDU site”, the contract should make clear that “the risk for the products shall remain with the seller until the buyer has inspected the products and confirmed the duly receipt in writing”. For further assistance or advice, please do not hesitate to contact AllForSite. # # # More About AllForSite: Allforsite supplies telecom infrastructure products (towers, shelters, coaxial cables and connectors, antennas systems, cable support and fixations…Andrew, Kathrein, RFS, Roxtec, 3M, Anritsu, Eupen, etc), and provides telecom-oriented logistics services. Allforsite’ s customers base includes many of the world’s largest wireless networks operators and radio equipment vendors, and is spread out over Europe, Africa, the Middle East and Asia. Website: www.allforsite.com/ End
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