What is Delivered Duty Paid? (DDP)
Delivered Duty Paid is one of the 11 official incoterms. In this ruling, the seller is responsible for all the risk and costs involved with transporting the goods from origin through to an agreed location agreed with the buyer in advance. This will usually be the premises or warehouse of the buyer.
What Transport Mode Can Delivered Duty Paid Be Used With?
Delivered Duty Paid can be used with any transport mode, or where there is more than one singular mode of transport.
How Does Delivered Duty Paid Work?
Within this incoterm, the seller is responsible for arranging carriage and the delivery of goods to a named place, which is agreed in advance with the buyer. The seller is not just responsible for the full transportation of goods. The seller must also settle all costs associated with the customs clearance at destination. This includes the customs clearance itself along with any applicable import taxes (such as VAT in the UK) and any customs duty.
Within DDP, risk only transfers to the buyer when the goods are ready for at the agreed point.
DDP Overview
- Delivered Duty Paid can be used with any transport mode.
- DDP can prove highly problematic for a seller as it is the only incoterm which requires the seller to take responsibility for import clearance and payment of taxes and import duty at the end destination.
- In some countries, clearing methods are complex and extremely strict and best handled by the buyer than the seller.
If you have any questions regarding the use of “Delivered Duty Paid” or any other incoterm, please feel free to contact our team on 0113 250 1155 or email us at: sales@tudorfreight.com
