July 29, 2015
Know Your Incoterms
Delivery Duty Paid
When a transaction is set up with Delivery Duty Paid, the seller assumes the risk and cost of delivery.
With a DDP arrangement, the seller must pay for transporting the goods and is liable for the goods. Only once the goods have been received and transferred to the buyer does the risk shift from seller to buyer. The seller is responsible for all associated fees including shipping, taxes, duties, and other expenses that arise during the transportation process.
DDP is the only rule where the seller is responsible for import clearance and payment of taxes and duties. This is not always the best scenario for the seller as the local buyer is sometimes more equipped to handle this process, especially in countries where import clearance can be complicated and bureaucratic.
Download Avalon’s Handout for a full list and overview of Incoterms.