what is delivered duty paid ddp 
delivered duty paid ddp is a delivery agreement whereby the seller assumes all of the responsibility risk and costs associated with transporting goods until the buyer receives or transfers them at the destination port 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 buyer s country ddp can be contrasted with ddu deliver duty unpaid investopedia jessica olahunderstanding delivered duty paid ddp delivered duty paid ddp is a shipping agreement that places the maximum responsibility on the seller in addition to shipping costs the seller is obligated to arrange for import clearance tax payment and import duty the risk transfers to the buyer once the goods are made available to the buyer at the port of destination the buyer and seller must agree on all payment details and state the name of the place of destination before finalizing the transaction 1ddp was developed by the international chamber of commerce icc which sought to standardize shipping globally hence ddp is most commonly used in international shipping transactions the benefits of ddp lean in favor of the buyer as they assume less liability and fewer costs in the shipping process this therefore places a great deal of burden on the seller 2seller s responsibilitiesthe seller arranges for transportation through a carrier of any kind and is responsible for the cost of that carrier as well as acquiring customs clearance in the buyer s country including obtaining the appropriate approvals from the authorities in that country also the seller may need to acquire a license for importation however the seller is not responsible for unloading the goods 3the seller s responsibilities include providing the goods drawing up a sales contract and related documents export packaging arranging for export clearance satisfying all import export and customs requirements and paying for all transportation costs including final delivery to an agreed upon destination 3the seller must arrange for proof of delivery and pay the cost of all inspections and must alert the buyer once the goods are delivered to the agreed upon location in a ddp transaction if the goods are damaged or lost in transit the seller is liable for the costs 3managing customsit is not always possible for the shipper to clear the goods through customs in foreign countries customs requirements for ddp shipments vary by country in some countries import clearance is complicated and lengthy so it is preferable if the buyer who has intimate knowledge of the process manages this process if a ddp shipment does not clear customs customs may ignore the fact that the shipment is ddp and delay the shipment depending on the customs decision this may result in the seller using different more costly delivery methods special considerationsddp is used when the cost of supply is relatively stable and easy to predict the seller is subject to the most risk so ddp is normally used by advanced suppliers however some experts believe that there are reasons u s exporters and importers should not use ddp 4u s exporters for example may be subject to value added tax vat at a rate of up to 20 5 moreover the buyer is eligible to receive a vat refund exporters are also subject to unexpected storage and demurrage costs that might occur due to delays by customs agencies or carriers bribery is a risk that could bring severe consequences both with the u s government and a foreign country for u s importers because the seller and its forwarder are controlling the transportation the importer has limited supply chain information also a seller may pad their prices to cover the cost of liability for the ddp shipment or markup freight bills if ddp is handled poorly inbound shipments are likely to be examined by customs which causes delays late shipments may also occur because a seller may use cheaper less reliable transportation services to reduce their costs since ddp is an important aspect of customer relationship management crm for delivery companies it s important for businesses to invest in the best crm software currently available 