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.

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.