DDP INCOTERM (Delivery Duty Paid)

Using DDP incoterm

DDP or “Delivery Duty Paid” Incoterm states that the seller must make the goods available to the buyer at a prearranged location (buyer’s factory, warehouse etc.) and is to cover all associated expenses including unloading the goods from the carrier and any customs procedure costs and tariff costs that may apply. Under DDP Incoterm, the seller bears full responsibility of cost and risk until the goods have been unloaded at the agreed location.

The DDP Incoterm is versatile as it can be used irrespective of the mode of transport.

Seller’s obligations under DDP

  • Delivery of goods and documents required
  • Packaging and wrapping
  • Inland transport in the country of origin
  • Customs at origin
  • Exit charge
  • International freight
  • Insurance
  • Arrival expenditures
  • Customs on arrival
  • Payment of fees
  • Inland transport at the destination country (depending on agreed location)

Buyer’s obligations under DDP

  • Payment of the goods
  • Inland transport at the destination country (depending on agreed location)

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