10 Advantages for exporter under DDP terms

DDP, what are the upper hands to Seller?

DDP terms, is it beneficial for seller? If so what are those merits under DDP terms to an exporter in international business?

The below post is one of the several web posts explaining deeply about different delivery rules, its  advantages and disadvantages from both buyer’s and seller’s perspective and comparison with one of the other.

Here we chew over the benefits of DDP terms for sellers.  In an export import business, the exporters get advantages when he contracts DDP terms under the following situations. 

Those advantages are explained below one by one:


01.One of the main advantage for exporter under DDP delivery terms is that under DDP rules of delivery in international trade, the exporter undertake maximum risks to deliver goods thereby he may keep a decent profit margin. 

02. When investing more amount in movement of goods by seller under DDP delivery terms, the invoice value against sale of goods also would be high in turn; foreign exchange earnings.   The exporter is also benefited for export incentives from government against such foreign exchange earnings. This is an advantage for seller when contract of movement of goods are on DDP basis.

03. Another benefit for exporter when contract of carriage is on DDP is that; in an export business where DDP terms are undertaken to move goods, the exporter handles all movement of goods from seller’s place to buyer’s place.  The exporter acquaints immense knowledge on government rules and regulations of exporting country to move goods which would be an asset to enhance his business by providing similar services to same buyer or with other suppliers.

04. Under DDP delivery terms, the exporter handles import customs clearance process in buyer’s country and he becomes familiar with import taxes.  The exporter can add up profit margin against such risks and costs under DDP delivery rules. This is an upper hand for exporter under movement of goods on DDP delivery terms.

05. Another edge for exporter under movement of goods on DDP delivery rules is that the safety of goods can be ensured by the seller as he undertakes pre carriage, main carriage and on carriage.

06. The buyer undertakes unloading of cargo under DDP terms, and seller is not responsible for any damage or loss of goods shipped. This is an upper hand for exporter when contract of carriage is on DDP basis.

07. One of the other advantages for exporter under DDP delivery rules is that the exporter can avoid damages when loading goods at pre carriage, main carriage and on carriage till buyer’s place, as he is the sole party responsible under DDP terms of delivery.

08.  Another important advantage for exporter under DDP delivery terms is that the exporter under import export business can separately derive the cost involved under pre carriage, export customs clearance process expenses, export port handling charges, main carriage expenses, import customs clearing costs, import port handling charges and the costs involved in on carriage.  This is a major advantage for an exporter to plan and decide pricing of his products when his supplier seeks different delivery terms.

09. Under DDP delivery terms, the quality of movement of goods can be delivered to buyer by appointing a good freight forwarder, thereby business relationship can be strengthened with buyer. This is another benefit for seller, when goods are moved on  DDP basis of delivery terms.

 10. One of the other advantage for exporter when goods are moved under DDP terms of delivery rules is that the complete control over movement of goods are with the exporter under DDP delivery rules in export import trade thereby the exporter holds right to get Export data, shipping tracking information, status of import customs clearance and delivery status from carrier of goods and freight forwarders or any other service providers involved.

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