DDP stands for Delivered Duty Paid, which is an international shipping standard designed to protect buyers. In DDP shipping, the seller takes all responsibility for fees and risks of shipping goods until they are delivered to an agreed place by the buyer and seller. This means that the seller is responsible for the import formalities and transportation of the goods, including unloading the goods. DDP differs from Delivery at Place (DAP) as the seller is responsible for all transportation and associated costs, including export clearance and customs documentation required to reach the destination port.
DDP shipping is commonly used for international shipping as the risks are reduced but as a result, the costs are higher. The buyer is not liable for the actual shipping costs, making them more likely to purchase products without fear of being scammed or having to pay high taxes. DDP shipments help the buyers not get swindled, as the seller’s responsibilities assume all the risk and cost of shipping products.
Under DDP, the seller must absorb the costs associated with customs clearance, including any storage or demurrage charges incurred due to delays by customs authorities, other government agencies, delivery drivers, and air/ocean carriers. The financial risks and responsibilities remain with the seller until the goods are transferred at the agreed delivery location in the country where the customer is located.
In summary, DDP is an international shipping standard where the seller takes all responsibility for fees and risks of shipping goods until they are delivered to an agreed place by the buyer and seller. The seller is responsible for all transportation and associated costs, including export clearance and customs documentation required to reach the destination port. DDP shipping is commonly used for international shipping as the risks are reduced but as a result, the costs are higher.
