DDP: Delivered Duty Paid

DDP Delivered Duty Paid: The Full Package

Under the term DDP Delivered Duty Paid, the seller delivers the goods, cleared for import, and bears all costs and risks to the buyer’s doorstep. First appearing in 1953, DDP is the most inclusive Incoterm, embodying the spirit of full service in global trade. Picture a gift arriving at your door, fully wrapped and duty paid. That’s DDP.

With this, we’ve completed our tour of the Incoterms. Remember, these terms are the lifeblood of international trade, guiding countless transactions and ensuring smooth sailing in the vast sea of global logistics. So keep these terms close to your heart, and you’ll navigate the world of shipping with ease and confidence. Bon voyage!

Seller’s Obligations:

Deliver the goods, cleared for import, at the named place of destination.

Pay for all transport costs, including import duties and taxes.

Clear the goods for export and import.

Buyer’s Obligations:

Unload the goods.

Bear all risks of loss or damage once the goods have been delivered.

DDP Delivered Duty Paid All Costs and Risks seller

DDP instance:

The seller: A Chinese producer of Hydration Water Jug

The buyer: A housewares and outdoor products importer in South Africa

Shipping incoterm: DDP for 1000 pieces of Hydration Water Jugs

Here’s how the costs would break down:

Product Cost: Agreed price for the audio systems is $150,000.
Local Logistics: Costs for delivering goods from the factory to the port in China (seller’s responsibility), let’s say $3,000.
Export Customs Clearance: Costs for the goods to be cleared for export by China customs (seller’s responsibility), let’s say $1,500.
Freight Charges: Cost of shipping goods across the ocean to the destination port in South Africa (seller’s responsibility under DDP), let’s say $7,000.
Import Customs Clearance: Duties and taxes for goods to be cleared by South Africa customs (seller’s responsibility under DDP), let’s say $15,000.
Local Logistics in the USA: Costs for delivering goods from the port to the buyer’s store in South Africa (seller’s responsibility under DDP), let’s say $3,500.

So, the total cost to the seller (DDP price) is $150,000 (Product Cost) + $3,000 (Local Logistics) + $1,500 (Export Customs Clearance) + $7,000 (Freight Charges) + $15,000 (Import Customs Clearance) + $3,500 (Local Logistics in South Africa) = $180,000.

Shipping:

Under DDP, the seller has the obligation to arrange and pay for the carriage of the goods to the agreed destination, and also to clear the goods for import and pay any applicable local taxes or import duties. The risk transfers from the seller to the buyer only when the goods have been made available to the buyer, ready for unloading at the named place of destination.

Therefore, the total cost to the buyer is the DDP price ($180,000). There are no additional costs for the buyer under DDP, as all costs and risks up to the point of delivery at the destination are borne by the seller.

GWT Worldwide Logistics provides professional DDP Door to Door service worldwide.