What are the conditions DDP in import and export?

DDP (Delivered Duty Paid) - Taxed delivery means the seller delivers the goods when the goods are placed at the buyer's disposal at the specified destination in the buyer's country. The seller bears all costs and risks to transport the goods to this agreed destination. The seller has to hire domestic means of transport at the input and output terminals, rent the international means of transport (aircraft, ships), do the customs clearance for the exit and the input, pay the taxes on the output and most importantly in this condition it is required to PAY THE FIRST IMPORT TAX.

What is the DDP terms of delivery?

DDP (Delivered Duty Paid) - Taxed delivery means the seller delivers the goods when the goods are placed at the buyer's disposal at the specified destination in the buyer's country. The seller bears all costs and risks involved in transporting the goods to this agreed destination. The seller has to hire domestic means of transport at the input and output terminals, rent the international means of transport (aircraft, ships), do the customs clearance for the exit and the input, pay the taxes on the output and most importantly in this condition it is required to PAY THE FIRST IMPORT TAX.

Purchasers and sellers should clearly specify the place of delivery in the buyer's country because the seller bears all costs and risks associated with transporting the goods to the named destination in the country of buyer.

Responsibility of the seller in terms of delivery of DDP:

+ Trucking first output

+ Rent means of transport

+ Local Charge first output

+ Local Charge input

+ Export clearance

+ Pay export tax (if any)

+ Import clearance

+ Pay import tax

+ Bear all the costs from the time the goods are shipped from the seller's warehouse until the goods are delivered at the designated point in the buyer's country.

Responsibility of the buyer in terms of DDP delivery:

+ First trucking is imported from the specified point to the buyer's warehouse (Usually when DDP is applied, the buyer will choose the designated location as his or her warehouse. the seller will pay to deliver the goods to the buyer's warehouse location)

+ Bear all costs from the time of receiving the goods at the designated point to the buyer's warehouse.

Risks in terms of DDP delivery:

The risk from the seller passes to the buyer when the seller completes the delivery of the goods to the place agreed in the contract and is ready to unload the goods from the means of transport. The cost of shipment will be agreed as in the contract.

Cargo insurance under DDP:

Under DDP, neither party is required to buy insurance for the shipment. But to avoid risk, encourage the party with a longer risk segment to buy insurance for the shipment.

For example, goods pass risk from seller to buyer at a designated point in the buyer's country, in particular the buyer's warehouse. That is the seller's risk segment in this case from the seller's warehouse to the buyer's warehouse. This stretches long and brings a high risk to the seller during the transportation process. Thereby encouraging sellers in this case to buy insurance for the shipment to protect their interests.