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.
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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