DDP - Delivery Duty Paid
What is the DDP Incoterm (Delivery Duty Paid)
The DDP or Delivery Duty Paid Incoterm obligates the seller to make the goods available to the buyer in an agreed-upon location. This can be anywhere nominated by both parties, such as the buyer’s factory, warehouse, etc. The seller is responsible for all expenses involved in unloading the goods, as well as settles the payments for customs and tariffs. It’s applicable for all modes of transport.
The seller handles most of the transportation from beginning to end and bears all risks of loss of and or damage to the goods until they have been unloaded in the agreed-upon location. After unloading, minimal responsibilities and liabilities are left to the buyer.
Along with the DAP Incoterm, DDP is a good Incoterm for sellers who prioritize offering great customer service. First-time importers who are not experienced and aware of the shipping process will be very attracted to the DDP Incoterm.
Insurance is not required in the DDP Incoterm, however, because sellers who use DDP prioritize providing excellent customer service, they opt to obtain insurance. Insurance coverage can also protect the seller because of their significant responsibilities under this Incoterm.
The Seller’s Obligations Under the DDP Incoterm
- Deliver the goods and required documents
- Checking, packaging, and marking
- Contract of carriage
- Bear all risks of loss of or damage to the goods until they have been unloaded in the agreed-upon destination
- Customs handling fees at origin and destination
- Export clarence
- Transport-related security requirements
- Origin and destination chances
- Duties and taxes
- No obligation to provide insurance.
The Buyer’s Obligations Under the DDP Incoterm
- Pay for the goods
- At the seller’s request, assist in providing documents and information for import clearance
- Bear all risks of loss of or damage to the goods from the time they have been delivered
- No obligation to make a contract of carriage
- No obligation to obtain insurance
What Does the Seller Pay for Under the DDP Incoterm?
- All costs relating to the goods and their transport until delivery
- Unloading charges
- Costs of providing delivery and transport documents
- Duties and taxes
What Does the Buyer Pay for Under the DDP Incoterm?
All costs relating to the goods from the time they have been delivered Any costs involved in taking the delivery of goods from the agreed-upon destination
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