The DDP (Delivered Duty Paid) Incoterm is an international trade term used in the sale of goods and is used in international sales contracts. It lays out the terms and responsibilities for both the buyer and the seller.

Under DDP terms, the seller is responsible for delivering the goods to the buyer’s designated destination, cleared for import and ready for unloading, with all applicable duties, taxes, and charges paid.

 In essence, the seller takes on the most responsibility in this arrangement, handling the transportation, customs clearance, and payment of any duties or taxes incurred in importing the goods. The seller is not responsible for unloading.

The buyer’s responsibility begins once the goods are delivered at the agreed-upon destination, where they take over the risk and costs associated with further transportation and handling.

DDP terms provide clarity and convenience for both parties, as the seller ensures that the goods are delivered directly to the buyer’s premises, simplifying the import process for the buyer. This maximises convenience for the buyer while incurring higher costs for the supplier.

It’s essential for both parties to clearly understand their obligations and liabilities under DDP terms to avoid misunderstandings or disputes during the transaction.

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