What is DDP terms in an export Import Business?

 The information provided here is a part of Import Export online Training


The term DDP means, Delivery Duty Paid or Door delivery Duty Paid. In other words, the selling cost includes all expenses including duty or tax up to the buyer’s place.

different transport methods symbols I will explain DDP terms of delivery with a simple example. You are a Machinery seller situated near Mumbai, India. The buyer is situated in New York. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on DDP New York price of USD 6250. Here the selling cost of goods is USD 6250 DDP New York. You (the seller) arrange to carry the goods to Mumbai port, meet expenses including customs clearance in Mumbai, pays the ocean freight or airfreight up to New York, appoint a freight forwarder to customs clear the cargo at New York and deliver the goods at the door step of buyer’s place by paying any tax or duty of importing country . In other words, as per DDP terms of delivery, all delivery expenses up to the door step of buyers place in New York is borne by the seller including duty or tax of importing country. In DDP terms, insurance has to be arranged by the seller, as DDP price includes the cost of insurance also.

 

Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read.

 


The above information is a part of Export Import Training course online


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Comments


Yogesh Sahare: Can we avail the Credit on FOC & DDP Consignment

Ramesh Mehra : I have the following query. We want to make an export shipment of garments to Singapore by sea on DDP basis. How do we show the FOB value in the shipping bill.? The customs duty, clearing and delivery charges shall be paid by the agent in Singapore. How do we settle his bill. Can the shipping company or their Agent in India issue a bill or a certificate showing freight charges, clearing charges, duty and delivery charges as prepaid charges so that we make payment here.

Ravi : DDP shipment all expence of charges Duty have to declare separte

Johann Carrillo: I've worked in foreign trade for many years and I must to say that DDP presents many difficulties when managing a shipment. If I'm the seller, how am I supposed to pay taxes at destination? The buyers are the ones that must pay this amount at destination to their goverment, since they recover it later. Remember that DDP is delivery DUTY paid, not TAX... duties are different from taxes. Tax is a value that is different in every country and is impossible that you as exporter know this amount in advance but until the exact moment of the customs clearance at destination.

Antony bright: Do we need IE code for DDP import items

Emily: DDP shipping service means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. You can checkout the details on ICC Worldwide.

dipak: Thank you very much for your valuable efforts to start website (howtoexportimport.com) and educating people for business. Your website is always guiding us for many queries. Sir, we are new Exporter and currently working on our first shipment. Our Buyer has asked to deliver goods in DDP Incoterms. We are agreed with that. But this being our first shipment, we & our CHA also not able to understand How to Prepare Invoice for this?? Our buyer has agreed for $5 per KG of goods with DDP terms, this includes Basic Cost, Local Transport, Our Profit, Local Customs, Shipping, Destination Customs, Destination delivery etc. Now we are charging $5 from them for DDP delivery, but How to prepare Invoice? so that Destination Customs can calculate their Duty and everything will come eaqual to $5.

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