What is DDP?

DDP (“Delivered Duty Paid”) is one of 11 Incoterms® defined by the International Chamber of Commerce (ICC). Under the DDP term, the seller is responsible for covering all costs of the transport of goods, including customs clearance, import duties, and related fees.

Questions to ask about DDP shipping

The book Incoterms® Rules for Americans® by Frank Reynolds suggests questions that any exporter should be able to answer before shipping DDP. From our experience, it is also important for any buyer to make sure company sending product to them on DDP terms can answer the questions laid out on page 133. 

We recommend purchasing the book for the full list of questions from Reynolds. However, some of the important questions any buyer should consider include:

• Does the supplier know the full responsibilities of the seller under DDP as defined in Incoterms® 2020 rules? 
• Does the supplier know how import clearance is done in the buyer’s country?
• Are they acting as the importer of record for the transaction? Or are you? 
• Does the seller know the duty rate that applies to the product in the buyer’s country? Do they know if Section 301, anti-dumping, or countervailing duties apply?

Get third-party verification

Need help asking your supplier these questions? Make sure to use the DDP Check tool for third-party verification.

Don’t guess if it’s DDP.

The post Questions to Ask Before Buying on DDP Shipping Terms appeared first on DDP Check.

There is a definitive source for DDP shipping rules

What is the official definition of DDP (“Delivered Duty Paid”)? What should you use for you main reference of obligations? Individual and companies should refer to the official Incoterms® 2020 to fully understand the obligation of both the buyer and seller in any international transaction.  

We recommend getting a copy of Incoterms® 2020 and any parties you are doing business with.

What’s in the DDP shipping section?

The DDP section covers in detail the obligations of both the buyer and seller. Of particular interest to buyers is that “DDP required the seller to clear the goods for export where applicable, as well as for import and to pay any import duty or to carry out any customs formalities.”

Don’t guess if it’s DDP.

The post DDP Shipping – A look at  Incoterms® rules appeared first on DDP Check.

PDF download: Incoterms 2020 Reference Sheet
JPEG download: Incoterms 2020 Reference Sheet

Questions about which Incoterm to use? Contact us.

Engaging a supplier in China? Check out our NNN agreement template.

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