Shipping Policy: About DDP
Jun 13, 2023
DDP
- The English full name is Delivered Duty Paid, (named place of destination)
It means that the seller completes the import customs clearance procedures at the designated destination, and hands over the goods that have not been unloaded on the delivery means of transport to the buyer to complete the delivery. The seller must bear all risks and costs of transporting the goods to the named destination, including any "taxes" payable at the destination when customs formalities are required (including the responsibility and risk of customs formalities, and the payment of handling charges, duties, taxes and other charges).
MATTERS NEEDING ATTENTION
(1) Under the delivery terms of DDP, the seller delivers the goods at the designated destination after going through the export customs clearance procedures, which means that the seller has actually shipped the goods into the domestic market of the importer. If the seller has difficulty in handling the import formalities directly, he may also ask the buyer to assist in handling it. If the seller cannot directly or indirectly obtain the import license or go through the import formalities, the term DDP should not be used.
(2) If the parties wish to exclude from the seller's obligations certain charges payable on importation of the goods, such as value-added tax, they should add words to that effect, such as "delivered duty-paid, value-added tax unpaid (insert specified purpose ground)" to make it clear.
(3) The buyer is responsible for unloading the goods from the arriving means of transport at the named destination, but the seller must ensure that the goods are available for unloading. When signing the transportation contract, the seller should pay attention to the coordination between the transportation contract and the relevant delivery place of the sales contract. If the seller incurs unloading costs at the designated destination according to the transportation contract, the seller has no right to demand compensation from the buyer unless otherwise agreed by the two parties.
(4) Since the seller bears the risk prior to delivery at the specified delivery point, the buyer and the seller should specify the delivery address of the designated destination as clearly as possible, preferably down to a specific point within the designated destination. If no specific delivery point has been agreed or cannot be determined, the seller may choose the delivery point at the named destination which is most suitable for its purposes.
(5) The seller has no obligation to conclude an insurance contract with the buyer, but since the risk of the entire transportation process is borne by the seller, the seller usually avoids the risk of cargo transportation by purchasing insurance.

