What Is DDP



                                       
                                                        What Is DDP


"Delivered Duty Paid" is abbreviated as DDP. It is generally used for any mode of transport where more than one mode of transport is used. DDP incoterm mentions that the seller is responsible to make the goods available to the buyer at a pre arranged location for instance: buyer's factory or warehouse. The seller must also cover all the expenses that are associated with the goods from carrier such as customs duty, tariffs and taxes that may be imposed on the goods. It is also the responsibility of the seller to take care of all the risks and costs until the goods have been unloaded at the named location.

This incoterm is also versatile. Under DDP the seller's obligations are to pay for delivery of the goods and the customs clearance at the origin and the destination. The seller has to bear the responsibility of insurance of the goods, international freight, exit charge and payment of fees. He or she must also take care of the inland transportation at the country of the origin and at the destination country. The destination country depends upon the pre arranged location.

The buyer under this incoterm has precisely only two obligations to follow. The buyer must make the payment for the goods and should pay for the inland transportation at the destination country.
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