What is DDP terms in an export Import Business?
Wednesday, January 04, 2017     Category : Inco Terms

 The information provided here is 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 Says :
Friday, September 05, 2014
Can we avail the Credit on FOC & DDP Consignment
Ramesh Mehra Says :
Wednesday, February 11, 2015
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 Says :
Sunday, September 13, 2015
DDP shipment all expence of charges Duty have to declare separte
 

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