Delivery Duty Paid (DDP) is a type of shipping term that indicates that the seller is responsible for paying all of the costs and duties associated with delivering the goods to the buyer. This includes the cost of transporting the goods from the seller’s location to the buyer’s location, as well as any customs duties, taxes, and other fees that may be levied on the goods by the destination country.
DDP is one of several shipping terms that are commonly used in international trade. Other shipping terms include:
- Ex Works (EXW): This term indicates that the seller is responsible for making the goods available at their location, but the buyer is responsible for all costs and risks associated with transporting the goods to their destination.
- Free on Board (FOB): This term indicates that the seller is responsible for the costs and risks associated with delivering the goods to the port or other loading facility, but the buyer is responsible for the costs and risks associated with transporting the goods from that point to their final destination.
- Cost and Freight (CFR): This term is similar to FOB, but it also includes the cost of transporting the goods by sea or other means of transport to the named port of destination. The buyer is still responsible for the costs and risks associated with transporting the goods from the port to their final destination.
- Cost, Insurance, and Freight (CIF): This term is similar to CFR, but it also includes the cost of insuring the goods against loss or damage during transit. The seller is responsible for the costs and risks associated with delivering the goods to the named port of destination, and the buyer is responsible for the costs and risks associated with transporting the goods from the port to their final destination.
DDP is often used when the seller wants to provide a more complete door-to-door delivery service for the buyer. In a DDP transaction, the seller is responsible for all costs and risks associated with delivering the goods.
