What is DDP – Delivered Duty Paid ?

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DDP

What is DDP? 

DDP, or Delivered Duty Paid, is an international trade term that refers to a shipment where the seller assumes total responsibility and costs for delivering the goods to the named destination.

According to DDP Incoterms, what is each party responsible for?

DDP is the Incoterm that places the most risk and responsibility on the seller. Under DDP the seller is responsible for clearing customs, paying duties and taxes, arranging all transportation to the destination, import clearance, fees, and duties, and any associated fees with the above. 

The seller assumes all risk and responsibility until the goods are unloaded from the vehicle at the final place of destination, often at the buyer’s place of business. 

When is DDP used?

DDP can be used in any and across multiple modes of transport.

Clearing customs and arranging for imports can be difficulty in countries with complex or bureaucratic import procedure and since DDP requires that the seller clear imports in the destination country, it works best when the seller has local knowledge of the country of destination or if the import clearance is simple (such as in countries with an 

FTA).

Tags: incoterms

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