What is delivered duty paid (DDP)
Delivered Duty Paid (DDP) shipping is a delivery method where the seller assumes all risks and costs associated with transporting goods until they arrive at their destination. Predominantly used in international shipping, DDP is an established method by the International Chamber of Commerce to standardize global shipping practices.
Companies typically employ DDP for shipping via air or sea freight. This method significantly benefits buyers by reducing their risk, liability, and expenses. However, DDP can be a significant burden for sellers as it may diminish profits if not managed properly.
In a DDP agreement, the seller bears all transportation risks and responsibilities until the goods reach the buyer. Buyers are not responsible for shipping costs, encouraging them to purchase products without concerns about scams or high taxes. DDP shipping ensures buyer protection and holds the seller accountable until the product is delivered.
2- Second Definition
Delivered Duty Paid (DDP) is a shipping agreement where the seller takes on all responsibilities, risks, and costs involved in transporting goods until they reach the buyer at the destination port. This includes covering shipping expenses, export and import duties, insurance, and any other costs incurred during transit to the agreed location in the buyer's country.