Incoterms: What is DDP?

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

Industry Specific Guidance and Logistics Advice

Aerospace

Tudor International Freight provide a wide range of supply chain solutions to the aerospace sector. Our staff are familiar with industry terms and jargon – we understand and speak your language.

Chemicals

The chemical goods industry has experienced significant changes over recent years with a much larger emphasis being placed on logistics compliance and regulation. Tudor provide businesses with specialist chemical logistics advice and guidance.

Exhibitions and Events

When fast reactions and quick solutions are required, you can count on Tudor International Freight to provide a dedicated team and exceptional service to help make your event a resounding success.

Oil and Gas

We have been providing logistics services to the oil and gas industry for many years. Our specialist team have worked on many projects across the world and understand the demands of this sector more than most.

Manufacturing

Tudor International Freight manage the supply chain movements of many large international manufacturing companies. Our team appreciate the complex issues and unique logistical challenges facing this sector.