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  • Items proposed for consideration at the next meeting of Dispute Settlement Body February 28, 2020
    The WTO Secretariat has circulated a meeting notice and list of items proposed for the next meeting, on 28 February 2020, of the Dispute Settlement Body, which consists of all WTO members and oversees legal disputes among them. The meeting notice is circulated in the form of a document officially called an “airgram”.
    WTO
  • US donates USD 600,000 to further developing countries’ trading capacities February 25, 2020
    The United States contributed USD 600,000 (CHF 590,000) in 2019 to help developing and least-developed countries (LCDs) participate effectively in global trade negotiations. This donation will finance training workshops for officials from WTO member governments to help them deepen their understanding of multilateral trade rules and strengthen their negotiating capacity.
    WTO
  • Lithuania donates EUR 50,000 to enhance developing countries’ trading capacity February 24, 2020
    Lithuania is contributing EUR 50,000 (CHF 53,000) to help developing and least-developed countries take an active part in global trade negotiations. The contribution was acknowledged by Director-General Roberto Azevêdo at a meeting with Lithuania’s Minister of Foreign Affairs, Linas Linkevičius, on 24 February 2020.
    WTO
  • Third anniversary of Trade Facilitation Agreement sees increasing implementation rate February 22, 2020
    Three years since the Trade Facilitation Agreement (TFA) entered into force on 22 February 2017, WTO members have continued to make steady progress in its implementation. Director-General Roberto Azevêdo, on the occasion of the TFA’s third anniversary, welcomed members’ efforts to ensure traders can reap the full benefits of the Agreement.
    WTO

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.