Definition Definition

What Is Delivered Duty Paid (DDP) Shipping? Understanding DDP with Example

What is Delivered Duty Paid (DDP) Shipping?

Delivered Duty Paid (DDP) Shipping refers to the costs and charges the seller must bear when the ordered products are delivered to the customer's hands. The seller is settled for importation on the arrival times mode of transportation and available for discharging at the specific address. The seller is responsible for all activities and difficulties associated with transporting the products to their end location. Moreover, It is done for clearing the products not just for exporting but for importing, paying any charge due with both exports and imports of goods, and completing all customs clearance. 

Understanding Delivered Duty Paid (DDP) Shipping

In international trade, this concept Delivered Duty Paid is widely used. It refers to a transaction in which the seller of products undertakes the responsibility to cover all charges until the products arrive at the commonly agreed location. Suppose the final contractual location is the purchaser's hub and the purchaser is only responsible for landing the products and moving them from the hub to the storehouse. The seller might well be required by the agreement to bear the freight costs mostly from the hub to the purchaser's location in specific instances.

When Delivered Duty Paid (DDP) Shipping is managed improperly, imported cargo is more certain to be investigated by authorities and thus causing delays. Late deliveries may also happen due to a seller's decision to use less expensive, less reliable delivery providers to save money.

Practical Example

A business named Webring sells makeup and skincare products imported from the UK. They take orders from customers on a pre-order basis and deliver to the given location of the buyers. Now Webring is responsible for all activities and difficulties associated with transporting the products to their end location because they are practising the Delivered Duty Paid Shipping method. They have to bear all the expenses of customs taxes, shipping costs, and other fees required to clear the product from customs.

In Sentences

  • Delivered Duty Paid (DDP) Shipping is used in businesses or organizations to indicate that a seller has to pay for all the expenses and charges of a product to deliver that ordered product to the buyer's location. 


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