Arrival contract

Definition and principle

An arrival contract (or sale on arrival) is a type of international sales contract in which the seller undertakes to deliver goods at the agreed place of destination, bearing the risks and costs of transport to that point. Risk transfer coincides with delivery at destination, offering maximum security to the buyer.

Corresponding Incoterms

Arrival contracts correspond to D-group Incoterms:

• DAP (Delivered at Place): the seller delivers goods on the means of transport at destination, ready for unloading. Unloading is the buyer's responsibility
• DPU (Delivered at Place Unloaded): the seller delivers and unloads goods at the named place of destination. The only Incoterm where the seller unloads
• DDP (Delivered Duty Paid): the seller delivers at the place of destination, cleared for import, all duties and taxes paid. Maximum seller obligation

Advantages and disadvantages

For the buyer:

• Minimal risk: the seller bears all transport hazards
• Simplicity: no need to organise transport or intermediate formalities
• The price includes all costs to destination — facilitates offer comparison

For the seller:

• Total control of the logistics chain
• Ability to negotiate competitive transport rates through volumes
• Increased risk: responsible in case of delay, loss, or damage during transport

Precautions

• With DDP, the seller must be able to clear goods for import in the buyer's country — which can be complex in certain countries
• Always precisely specify the place of destination to avoid disputes over the exact delivery point