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What is a DDP?

wallpapers News 2022-03-02
The definition of the DDP
DDP means that the seller delivers the goods not unloaded on the delivery vehicle to the buyer at the designated destination after completing the import customs clearance procedures.  The seller must bear all risks and expenses of transporting the goods to the designated destination, including any "taxes" (including the liability and risk of customs formalities, as well as handling charges, duties, duties, and other charges) payable at the destination when customs formalities are required.
Seller's responsibility for DDP
Under this trade term, the exporter bears all the risks involved in the delivery of the goods to the designated destination. He also has to clear the customs at the destination port and pay taxes, commissions, and other charges.  It can be said that under this trade term, the seller needs to bear the biggest responsibility.  This term should not be used if the seller cannot obtain an import license directly or indirectly.
However, if the parties wish to exclude from the seller's obligations all costs (such as VAT) to be paid at the time of any import, this should be expressly stated in the sales contract.  If the parties wish the seller to bear the risks and costs of importation, the DDU term shall be used.
The term applies to all modes of transport, but the DAP term should be used when goods are delivered on board or at a quay at the port of destination.
DDP perspective of importers and exporters
In fact, both importers and exporters, the two sides in the process of doing business, have their own considerations, since the importer wants to transfer risk to the greatest extent, safeguard their own interests, and exporters may feel the same way, so even if the exporter accepted DDP terms, so in the process of actual trade practice, in order to maintain their own interests,  Exporters also tend to make a lot of demands on importers.  Because under the terms of DDP, most of the costs are borne by the seller, there may be many details of the costs the seller did not consider, so at this time the seller will try to leave more budget space for themselves, so as not to do a loss of business.
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