This Incoterms® rule represents the highest degree in terms of Seller’s commitment.
Indeed, in this case the Seller must bear the costs of the pre-carriage, main carriage and post carriage, up to the agreed delivery place, however the unloading is under the buyer’s responsibility.
In other words, the delivery is deemed completed (transfer of risks to the buyer) when the goods are placed at the buyer’s disposal, ready for being unloaded in the agreed named place.
Unlike the 10th other Incoterms, with the DDP rule the Seller is liable for export as well as for import custom clearance (Taxes, duties, VAT etc…)
Moreover, the seller is liable for any import and export pre-shipment inspection that might be requested by the authorities (in both countries)
Although there is no formal obligation regarding insurance coverage, upon buyer’s request the seller must provide any information needed for insuring the goods (at the buyer’s expense)
Furthermore, the seller has the obligation to provide the transport documents needed by the buyer for claiming the goods from the carrier
Usual Documents required:
It is very important to specify the exact point of delivery in the country of destination (transfer of risks to the buyer) as well as obtaining a contract of carriage, which reflects this precise location.
When should I use the delivered duty paid (DDP) Incoterms rule?
If the seller has a complete mastery of the import custom clearance applicable in the buyer’s country, then the delivered duty paid Incoterms rule can be used.
Otherwise, it is strongly recommended to use the DAP incoterms as the buyer is in a better position to handle this formalities with his national authorities.
Ex Works (EXW) Click here
Free Carrier (FCA) Click here
Free Alongside Ship (FAS) Click here
Free on Board (FOB) Click here
Cost and Freight (CFR) Click here
Cost, Insurance and Freight (CIF) Click here
Carriage paid to (CPT) Click here
Carriage Insurance paid to (CIP) Click here
Delivered at Terminal (DAT) Click here
Delivered at place (DAP) Click here
Delivered Duty Paid (DDP) Click here
Incoterms Checklist Click here