Delivered Duty Paid

Delivered Duty Paid

Delivered Duty Paid (DDP) is an Incoterm. It means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty. The most important thing for a seller to understand is that they must be able to carry out all import formalities in the destination country. This is highly unlikely as the great majority of countries require the declaration of the import to be made by a national of that country, and may also require the importer to be registered or licensed to import. The seller is responsible too for any penalties applied because they are not registered in the destination country, and also for any shift induty rates which might occur while the goods are in transit.

All risk for loss of, or damage to, the goods is for the seller which may cause problems. If the goods arrive at the buyer's premises in a damaged condition then the seller can only claim for the CIP value plus ten percent, yet he will have included in his price the import duty and local taxes which he may find difficult to have refunded.

In short, DDP is a term best avoided at all costs!

Also used interchangeably with the term "Free Domicile" which is a term used by freight forwarders but is not an Incoterm

Incoterm: International Commercial Term.


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Look at other dictionaries:

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  • Delivered Duty Paid — noun Meaning the seller pays for the all transportation to a named place in the country of import …   Wiktionary

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  • Delivered Ex Quay - DEQ — In international trade, a contract specification where the seller must deliver the goods to the wharf at the destination port. Delivered ex quay may be noted as having duty paid or unpaid. If it is marked as paid, the seller is responsible for… …   Investment dictionary

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