UNDERSTANDING DELIVERED DUTY PAID (DDP)

A shipping arrangement known as Delivered Duty Paid (DDP) places the greatest amount of obligation on the seller. The vendor must make arrangements for import clearance, tax payment, and import duty in addition to shipping fees.

Once the products are made available to the buyer at the port of destination, the risk passes to the buyer.

Before the transaction is complete, the buyer and seller must agree on all financial terms and identify the destination.

DDP is most frequently used in international shipping transactions because it was created by the International Chamber of Commerce (ICC), which aimed to standardise shipping worldwide.

The advantages of DDP skew in favour of the buyer because they incur less risk and expense during the shipping process; this puts a heavy load on the seller.