DDP terms of delivery – Insurance paid by Exporter or Importer?
When delivering goods by seller to buyer at destination port named, the question is; who is responsible to undertake insurance on movement of goods? In an export import business, under DDP terms,the exporter takes the responsibility of pre carriage, main carriage, on carriage and the import customs clearance procedures with taxes. Here, the question is whether the insurance is also arranged by the exporter. Since the letter ‘I’ is not mentioned in the three letter Inco terms DDP, either the exporter or the importer is responsible to arrange insurance on movement of goods under DDP. Importer or exporter may arrange insurance as per their contract of carriage mutually agreed at the time of entering in to the sale contract.
So, under DDP terms, neither the buyer nor the seller is responsible to undertake insurance for movement of goods.
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