When it comes to international trade, one of the most pressing issues is shipping. In drawing up contracts, the Incoterms 2010 (by The International Chamber of Commerce) help out.
What is DDP?
DDP means delivery duty paid (place name). The term is always used with the arrival place indication. Most often, this is the buyer’s warehouse. First, let’s figure out what does DDP mean in incoterms?
The seller is responsible for delivering the goods to the specified location (which determines by the buyer). The manufacturer also pays all costs for delivering the products to the destination, including import duties and taxes. A separate contract’s clause must specify whether the cargo’s unloading is the seller’s responsibility.
What does DDP stand for in shipping?
All risks in the delivery process are borne by the seller:
- Selection carriers and contracts conclusion.
- Goods damage or loss insurance in transit.
- Search for lost cargo.
- Pay idle at the terminal (not even the seller’s fault).
- Loading and unloading organization and payment (at ports, airports, cargo terminals).
What does DDP stand for in shipping when crossing the border?
One of the most difficult delivery points using DDP for the seller is the products’ customs clearance. For example, in some countries only resident firms or local affiliates are allowed to import goods. Also, the seller must independently:
- Calculate and pay duties, taxes.
- Get insurance.
- If necessary, obtain licenses and certificates.
- Fill out the customs declaration.
If the seller does not take into account any buyer’s country laws or misinterprets them, he will incur unforeseen expenses. Also, the cargo can be strongly delayed at the border.
What is DDP shipment for buyer?
This term sets the maximum obligations to the seller and the minimum obligations to the buyer. No risk or liability is transferred to the buyer until the goods are delivered to the specified destination. The buyer can take the goods’ unloading in stock. This should be spelled out in the contract.
What is DDP in accordance with the maritime rules and inland navigation?
The term DDP is suitable for all transport modes and their various combinations. It can be used for container and non-container transportation. In the case where the load is sealed, the term DDP is ideal. The risk and responsibility for unloading from one carrier to another remains on the seller. If you use another term, for example, DAT (delivered at terminal), the container would have to be opened. Otherwise, there is no way to check the freight integrity.
What is DDP shipment with an independent agent?
The DDP delivery term can’t be applied if the seller directly or indirectly can’t ensure the import fulfillment customs procedures for the products’ importation. However, it is allowed to attract a customs broker.
If the parties have agreed to exclude some of the expenses payable on import (such as value added tax – VAT) from the seller’s obligations, this should be clearly defined in the sale’s contract. In some cases, certain fees types payment can be completely avoided. NH Logistics conducts business consultations on customs clearance profitable issues.
The seller may agree to the DDP delivery and transfer authority to an independent agent. An importer responsibilities are often performed by logistics companies. NH Logistics can take on the delivery services’ full range or carry out only the functions needed by the client.
What is DDP for carrier?
The term DDP may be used in the products’ carriage by any transport’s mode, including mixed, multimodal transport and groupage cargo. The word “carrier” means any company who on the carriage contract basis undertakes to provide or arrange for the freight transportation by rail, road, air, sea and inland waterway or these transport’s types combination.
Do you want to know the delivery rules to a particular country? Learn more about what does DDP mean in shipping terms.
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