What is DDP shipping?

The DDP term 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.

How do you verify DDP terms?

Ultimately, the seller shipping the goods will be responsible for arranging the DDP shipment. A buyer should verify that the seller understands their obligations to pay all transportation costs, including customs clearance, import duties, and other fees. We recommend using the DDP Check service to independently check with the seller that they fully understand their DDP responsibilities for your specific order.

Understand DDP and other shipping terms

The Incoterm you use will determine the legal obligations of you and the individual entity you are doing business with. The seller may be offering other options, like EXW (“Ex Works”), FOB (“Free on Board”), CIF (“Cost Insurance Freight”), etc. These are all important Incoterms^® which define the responsibilities of sellers and buyers.

Make sure you, and the other party, have a clear understanding of your obligations. If you are transacting under DDP terms, make sure you and the other party have a clear understanding of what the obligations are.

Regardless, if you purchase products or materials from overseas, make sure you understand the shipping term and obligations. We recommend anyone conducting business with overseas partners, importing or exporting, purchase a print or digital copy of the official Incoterms® 2020 from ICC. The printed publication can also be purchased on Amazon.

Don’t guess if it’s DDP.

The post What is DDP (“Delivered Duty Paid”)? A guide for buyers. appeared first on DDP Check.