What is DDP terms of delivery?

DDP - Delivered Duty Paid (named place of destination)


Delivered duty paid means that the seller fulfils his commitment to deliver when the goods have been made available at the mentioned place in the country of importation. The seller needs to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation.


This term is usually used by a buyer who wants the seller to handle all responsibilities involving transportation of goods to the final place i.e, right up to their door.

Whilst the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation.

This term can be used for Air and Sea transport.


Obligation and expenses of seller:-

All responsibilities and charges should incur by seller include Warehouse Services, Export packing, assistance in obtaining any exports licence or other official authorisation, Loading at point of Origin, Origin Inland Freight, Origin Port Charges, Export Customs clearance, Origin Forwarder Fees, Ocean/Air Freight, Destination Port Charges, Import Customs clearance, Import Duties and Taxes Delivery cartage to Final Destination.


The risk passes to the buyer from the seller after the goods have been delivered to the destination place i.e at the door step or final place of delivery that mentioned in the contract which is usually the buyer’s place of business.


Obligation and expenses of Buyer:-

Pay the price as provided in the contract of sale.

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