Delivered Duty Paid (DDP)
Candlefocus EditorUnder DDP, the seller is responsible for all costs and risks associated with transporting the goods until they are delivered to the agreed-upon destination. This includes items such as all transportation costs including freight, insurance, on-carriage, and any applicable taxes or customs duties. The sellers are also responsible for the documentation related to the export and import of goods, as well as the storage costs in case of any unexpected delays that may occur.
The benefit of the DDP is that it offers the most comprehensive delivery protection to the buyer. All risks and costs associated with the delivery are assumed by the seller and the buyer does not need to worry about any complexities of international commerce. DDP is an attractive option for businesses buying from international sellers, as it simplifies the process and ensures that the goods are delivered as quickly and safely as possible.
Despite its convenience, DDP does carry some pitfalls for sellers. The risks for the seller are vast and include the costs of bribery, VAT charges, and the cost of storage if any delays occur. It is essential for sellers to be aware of these potential pitfalls and the associated costs before agreeing to the DDP.
In conclusion, Delivered Duty Paid (DDP) is an advantageous and convenient Incoterm. It relieves buyers from most of the complexities of international trade and ensures that goods are deliver as quickly and safely as possible. However, sellers must be aware of all the associated risks and costs if they are to agree to the DDP.