DDP - Delivery Duty Paid - What is the meaning of the DDP, Delivery Duty Paid shipping term? Using the DDP Incoterm rule means the seller delivers the goods to the agreed place destination. Using the DDP Incoterm rule, the seller assumes all cost - including import formalities, and risks until the goods are ready for unloading at named place of destination.
In some countries, import clearance procedures can be complex and therefore this can create problems for the seller if they are not accustomed to local regulations.
Did you know? The DDP Incoterm rule is the only rule that places the obligation on the seller for import clearance and tax payments and/or import duty.
With all incoterms it is important to understand the obligations of both the buyer and seller. There are eleven incoterms covering international shipments, are you aware of all the different options? If you need shipment support, please reach out to the team!
FREE DOWNLOAD: You can download our free Incoterms chart which provides simple explanations of all eleven incoterms here