Delivered Duty Paid - Definition
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What is Delivered Duty Paid?
Delivered duty paid (DDP) is a contractual agreement in which the seller assumes total responsibility for the transportation of goods purchased by buyers and all the costs associated therewith. This generally includes payment of shipping costs, tariffs, and taxes and other expenses involved in the delivery of the goods. Once a seller transports goods to the agreed destination, all the risks and responsibilities are transferred from the seller to the buyer.
The responsibilities of a seller in a delivered duty paid agreement are;
- Delivery of the goods purchased by the buyer.
- Acquire a license for importation and delivery of the goods, as well as export clearance.
- Payment of all costs associated with the carriage and delivery of the goods. This includes transportation costs, Value-added tax and other unexpected costs associated with the delivery.
- Arrangement of all documentation that will aid an easy clearance of the goods at the port.
- Obtaining of necessary approvals from authorities.
- Issuance of proof of delivery to the seller and evidence of due payments made for the transportation of goods.
Delivered Duty Paid (DDP) shipments are free from customs. Due to the rigorous process of customs, the buyer bears the burden of customs and import clearance.