DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid) is an Incoterm indicating that the seller is responsible for delivering the goods to the buyer's premises, including all costs and duties.

Delivered Duty Paid (DDP) is an incoterm used in international shipping. It signifies an agreement where the seller bears all responsibilities, risks, and costs associated with transporting goods until they are received or transferred at the destination port.

Seller's Responsibilities under DDP Incoterm

Under DDP, the seller/exporter assumes comprehensive responsibilities, including arranging transportation, paying shipping costs, export/import duties, insurance, and other expenses incurred during shipping.

Additionally, the seller must handle import clearance, tax payment, and import duty, with the risk transferring to the buyer once the goods are available at the destination port.

Difference Between DDP and DDU

The key distinction lies in the responsibility for customs charges, duties, or taxes. DDU implies that the customer/buyer is responsible for these payments, while DDP signifies that the seller must cover customs charges, duties, and taxes required to send the product to the destination country.

DDP Favors the Buyer

DDP offers significant benefits to the buyer, as the seller assumes most of the liability and costs throughout the shipping process. In the event of damage or loss to the goods during transit in a DDP transaction, the seller is held responsible for covering the associated costs. The buyer incurs fewer responsibilities and costs, placing a considerable burden on the seller.

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