Question 1

What does DDP mean?

Accepted Answer

Delivered Duty Paid means the seller takes maximum responsibility: delivering the goods to the named place at destination, cleared for import with duties and taxes paid.

Question 2

Who pays import duties and VAT under DDP?

Accepted Answer

The seller. Under DDP, the seller handles import customs formalities and pays duties and taxes. Local VAT registration or a fiscal representative may be required depending on the country.

Question 3

When does risk transfer under DDP?

Accepted Answer

Risk transfers to the buyer when the goods are placed at the buyer’s disposal at the named place, ready for unloading (unloading is not included).

Question 4

Does DDP include unloading?

Accepted Answer

No. Unloading at the named place is the buyer’s responsibility. If the seller must unload, use DPU.

Question 5

Is DDP suitable for any mode?

Accepted Answer

Yes. DDP works for road, air, sea and multimodal. Specify the named place precisely.

Question 6

Can the seller always act as Importer of Record (IOR)?

Accepted Answer

Not always. Some countries restrict non-resident importers or require a local entity/fiscal representative. Check feasibility before agreeing to DDP.

Question 7

Does DDP include insurance?

Accepted Answer

Insurance is not required by the rule. The seller may arrange it, but it should be agreed contractually.

Question 8

How to avoid hidden destination charges under DDP?

Accepted Answer

Define scope clearly: who pays terminal handling, security fees and local delivery surcharges. Align documents and commodity codes to avoid reassessments.

Task	Party	Notes
Export packing & documentation	Seller	Commercial Invoice, Packing List etc.
Export clearance at origin	Seller	Seller files export declaration
Main carriage and delivery to named place	Seller	Any mode; specify address/terminal precisely
Import clearance, duties & taxes	Seller	Seller acts as/appoints Importer of Record as permitted
Delivery ready for unloading (risk point)	Seller → Buyer (risk)	Risk transfers when goods are placed at buyer’s disposal
Unloading at named place	Buyer	Use DPU if seller must unload
Insurance	As agreed	Not mandatory; agree in contract if required

Seller delivers cleared for import with duties and taxes paid

DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid)

What is DDP?

Risk and responsibility

Practical considerations

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