What is DDP?
Otherwise known as Delivered Duty Paid, DDP means that the seller has fulfilled his obligation to deliver when the goods have been made available at the named place in the country of importation.
During this process, the seller is responsible for delivering the goods to the place agreed in the contract of sale (named place), and must pay all costs required to bring the goods to the destination, including import duties and taxes. However, the seller is not responsible for unloading the contents of the container or load. This term places the highest responsibility on the seller and the lowest responsibility on the buyer. The seller bears all risk and responsibility until the goods are delivered to the named place of destination.
Under DDP terms, there is a higher risk of delays and unforeseen expenses. The seller is responsible for clearing customs, paying duties and taxes, and arranging all the necessary registrations. The seller generally acts as a foreign importer of record at the destination country and therefore should have a detailed understanding of the import rules and regulations in that country.
The risks to the seller are broad and include VAT (value-added tax) charges, bribery, and storage costs if unexpected delays occur. The seller must arrange all transportation and associated costs, including export clearance and customs documentation, required to reach the destination port.