DDP — Delivered Duty Paid

The meaning of it is that the delivery is completed for the supplier when the goods are delivered to the recipient, import duty paid and cargo ready for unloading at the indicated destination. DDP clause implies maximum obligations for the shipper, as opposed to EXW clause, where all shipping responsibilities are placed on the recipient. Recipient assumes only the unloading of goods on the spot and insurance of the goods at will. All other costs are transferred to the supplier (export and import payments, costs of transportation of goods) DDP is used to transport goods by any means of transport.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller.

EXW

The seller is responsible for all costs and risk until the goods are unloaded.

Seller’s Obligations

Goods, commercial invoice and documentation
Export packaging and marking
Export licenses and customs formalities
Pre-carriage and delivery
Loading charges
Main carriage
Proof of delivery
Import formalities and duties
Cost of all inspections
Delivery to named place of destination

Buyer’s Obligations

Payment for goods as specified in sales contract
Assist seller in obtaining any documents or information necessary for export or import clearance formalities

Bottom Line

Delivery Duty Paid (DDP) is a crucial Incoterm in international trade, placing a significant burden of responsibility on the seller for the delivery of goods to the named place of destination in the buyer’s country. Understanding the importance of DDP, how it works, and its advantages is essential for both buyers and sellers engaged in international transactions.

DDP offers convenience and predictability to buyers, making it a popular choice in various industries, including ecommerce. However, it requires careful consideration of import regulations, customs clearance procedures, and shipping costs to ensure successful transactions. Ultimately, selecting the right Incoterm, whether it’s DDP, FOB, EXW, or others, depends on the specific needs of the transaction and the preferences of the parties involved.