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Trade Knowledge

Trade Terms-DDP(DELIVERED DUTY PAID)

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DDP
DELIVERED DUTY PAID(…named place of destination)-- Delivery after duty paid(the designated destination) means delivery of goods by the seller to a designated place in the importing country where the goods can be collected by the buyer. The seller must bear the risks and costs of bringing the goods there, including customs duties, taxes and other charges, and clear the goods for import. In contrast to EXW, DDP is the term used by sellers for most obligations. This term shall not be used if the seller can not obtain an import licence directly or indirectly.
DDU terminology should be used if the parties wish the buyer to clear the goods for import and pay customs duties.
If the parties wish to exclude from the seller's obligations ceRTAin costs to be paid for the importation of the goods, such as value added tax(VAT), they should add a note to this effect, such as "post-tax delivery, VAT is not paid(... at the designated destination)", to make it clear.

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