DDP (delivered duty paid)
DDP DELIVERED DUTY PAID
(… named place of destination)
“Delivered duty paid” means that the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear all the costs and risks involved in bringing the goods thereto including, where applicable, any “duty” (which term includes the responsibility for and the risks of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.
Whilst the EXW term represents the minimum obligation for the seller, DDP represents the maximum obligation.
This term should not be used if the seller is unable directly or indirectly to obtain the import licence.
However, if the parties wish to exclude from the seller’s obligations some of the costs payable upon import of the goods (such as value-added tax : VAT), this should be made clear by adding explicit wording to this effect in the contract of sale.
If the parties wish the buyer to bear all risks and costs of the import, the DDU term should be used.
This term may be used irrespective of the mode of transport but when delivery is to take place in the port of destination on board the vessel or on the quay (wharf), the DES or DEQ terms should be used.
While the term “ex works” indicates the seller’s minimum obligation, the term ‘‘delivered duty paid’’ when followed by words naming the buyer’s premises denotes the other extreme-the seller’s maximum obligation. The term “Delivered Duty Paid” may be used irrespective of the type of transport involved. This INCOTERM can be classified in a group where the seller is responsible for all costs and risks until arrival. It may be worth noting that in modern. multimodal transport, “door-to-door services” may be provided by carriers, be they traditional ocean carriers or “NVOCs”. The abbreviation, DDP, may be confused with “door-to-door” service. This should be avoided.
