DDP | Delivered Duty Paid

DDP | Delivered Duty Paid

DDP (named place) INCOTERMS 2020

DDP means the goods are delivered and the risk is transferred from the seller to the buyer when:

• The goods are made available at the disposal of the buyer,
• Cleared for import,
• Ready for unloading on the vehicle bringing the goods to the named place,
• At the named place or the exact location within the named place (if such a point is defined).

In this rule, the location at which the risk is transferred from the buyer to the seller and also the location up to which the seller is responsible to arrange and pay for transportation costs are the same.

What you really need to watch for:

• This rule can be used for any mode of transportation.
• Amongst all the 11 Incoterms 2020 rules, DDP puts the highest level of responsibility on the seller's account, even import customs clearance in the country of destination which is naturally much easier to leave this to the buye to take care of. So, it is important for the seller to accept this terms with care.
• It is important the both parties agree on the exact location within the named place of destination as precisely as possible as this exact location is where the risk is transferred from the seller to the buyer and also the location up to which the seller has to pay for the  transportation charges.
• If based on the transport service contract between the seller and the transport service provider, any unloading costs at final destination occurs, the seller can not ask the buyer to pay for it separately.