what is ddp

DDP stands for "Delivered Duty Paid" and is an international trade term that refers to a shipment where the seller assumes total responsibility and costs for delivering the goods to the named destination. Under DDP, the seller is responsible for clearing customs, paying duties and taxes, arranging all transportation to the destination, import clearance, fees, and duties, and any associated fees with the above. The buyer receives or transfers the goods at the destination port, and this agreement includes paying for shipping costs, export and import duties, insurance, and any other expenses incurred during shipping to an agreed-upon location in the buyers country. DDP is mostly used in international shipping transactions and was developed by the International Chamber of Commerce (ICC) to standardize shipping globally. The benefits of DDP lean in favor of the buyer as they assume less liability and fewer costs in the shipping process, which places a great deal of burden on the seller.