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  • WTO launches new edition of Handbook on the TRIPS Agreement November 27, 2020
    The WTO launched today (27 November) the second edition of “A Handbook on the WTO TRIPS Agreement”, which describes the historical and legal background to the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS), its role in the organization and its institutional framework. The publication coincides with the 25th anniversary of the entry into […]
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  • WTO to host first Trade for Peace Week November 25, 2020
    The WTO will host the first edition of the Trade for Peace Week from 30 November to 4 December 2020. Ten virtual panel sessions will explore the nexus between trade and peace, with the focus on fragile and conflict-affected countries in accession which want to use trade and economic integration to promote sustainable and inclusive […]
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  • DDG Agah at ITC Joint Advisory Group: Open trade and economic inclusion key to post-COVID recovery November 25, 2020
    In remarks on 25 November to the 54th session of the Joint Advisory Group that oversees the work of the International Trade Centre (ITC), WTO Deputy Director-General Yonov Frederick Agah argued that open international trade, together with efforts to ensure the benefits from economic activity are widely shared, would be necessary to repair the social […]
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  • DDG Wolff: “WTO reform is both necessary and feasible” November 24, 2020
    Speaking at the “1+6” roundtable meeting presided by Chinese Premier Li Keqiang on 24 November, Deputy Director-General Alan Wolff urged WTO members to begin serious engagement on improving the WTO, arguing there was enough common ground to reach major new agreements. He also called on China to participate actively and contribute positively to planning far-reaching […]
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Delivered Duty Paid DDP



 

     Any type of transport mode, including Multimodal Transport

Delivered duty paid

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:

  • Commercial Invoice
  • Documents as agreed in the contract
  • Transport documents
  • Proof of export and import custom clearance

Caution!

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.