DDP is an international trade term that stands for "delivered duty paid". For import by sea and air, the seller shall bear the maximum liability for shipment under this Incoterm. DDP can be risky as the seller is responsible for delivery and may lack knowledge and requirements of the local destination. This is especially true when Chinese factories use DDP.
DDP agreement: Liability of buyer and seller
In this agreement, the supplier (seller) is responsible for all shipping arrangements, including import customs charges, until the goods are delivered to the buyer. DDP means that the supplier must pay all import and export expenses and the buyer does not bear any expenses related to the transportation of the goods.
The buyer is essentially not responsible for any part of the logistics process other than receiving the goods. Part of receiving the goods is the unloading process. Any unloading costs are at the buyer's expense, so the Buyer needs to be aware of these costs, especially when shipping to the fulfillment warehouse.
The Buyer needs to understand that this Incoterm is only concerned with shipping, import and export duties and taxes and any costs beyond this scope are likely to be borne by the buyer.
Responsibilities of the Seller:
Typically, the seller bundles the total transportation cost, called landing cost, as a cumulative offer for the service. When sellers quote a product, they are likely to quote the combined value of their product as DDP. When the seller quotes and includes the Incoterm abbreviation DDP, this means that the cost of the goods includes freight and duty.
The seller's liability extends beyond the final delivery of the goods and includes:
Draft sales contract and related documents
Meet all import and export requirements
Pay all import and export duties and taxes
All shipping costs, including delivery to the final agreed destination
The cost of all government inspections
Proof of delivery
The supplier shall be responsible for any damage or loss in transit.
DDPFORWORLD- Professional China international freight forwarder
DDP shipping remains one of the most popular modes of transportation for international businesses as it is popular with buyers. They take less risk until the product is delivered, so it's in their best interest. However, if there are too many problems, the costs associated with the seller's DDP can make it unprofitable.
DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. We do DDP shipping since 2015 by handling home décor, Pet products, battery, power banks, DG cargo, general cargo and Amazon FBA forwarding service. We make your shipping easier and faster by Sea, Air, Express, Truck or Railway. If you run an e-commerce business and want to find a trusted company to provide DDP services to work with, please contact us.
Phone: +86 18682082113
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