Delivered Duty Paid (DDP)
Definition of 'Delivered Duty Paid (DDP)'
DDP is a very comprehensive term that shifts a lot of risk and responsibility to the seller. It is often used when the buyer is located in a country with high import duties or taxes, or when the buyer does not have the expertise or resources to handle the import process.
Here is a more detailed explanation of the DDP term:
* The seller is responsible for arranging and paying for transportation of the goods to the buyer's specified location.
* The seller is also responsible for obtaining any necessary import licenses or permits.
* The seller is responsible for paying any import duties or taxes.
* The buyer is responsible for unloading the goods.
DDP is a very useful term for buyers who do not want to be involved in the import process. However, it is important to be aware of the risks and responsibilities that are associated with this term.
Here are some of the advantages of using DDP:
* The buyer can be sure that the goods will be delivered to their specified location.
* The buyer does not have to worry about the import process.
* The buyer can be sure that all costs associated with transporting the goods will be paid by the seller.
Here are some of the disadvantages of using DDP:
* The seller may be exposed to a lot of risk and cost.
* The seller may have to deal with a lot of paperwork and bureaucracy.
* The seller may have to work with a foreign customs broker.
Overall, DDP is a very comprehensive term that can be very useful for buyers who do not want to be involved in the import process. However, it is important to be aware of the risks and responsibilities that are associated with this term.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.