SPECIAL CONSIDERATIONS ABOUT DDP

When the cost of supply is comparatively steady and straightforward to estimate, DDP is utilized.

Since the seller bears the greatest risk, advanced suppliers frequently employ DDP.

However, some experts believe that there are reasons U.S. exporters and importers should not use DDP.

Value-added tax (VAT) may be charged to exporters from the United States at a rate of up to 20%. The purchaser is additionally qualified for a VAT refund.

Additionally, exporters may incur unforeseen storage and demurrage fees as a result of delays by customs, agencies, or carriers. Bribery is a problem that could have serious repercussions for the American government as well as a foreign nation.

Because the seller and its forwarder are in charge of the shipping, U.S. importers have little knowledge of the supply chain.

Additionally, a seller may markup freight bills or raise prices to cover the cost of obligation for the DDP shipment.

Poor DDP management increases the likelihood that inbound shipments may be held up by customs inspection. In order to cut expenses, a seller may choose to use less dependable, less expensive delivery providers, which could result in late shipments.