DDP stands for Delivered Duty Paid… (named place of destination), which means delivery at the designated destination after the seller has completed the import customs clearance procedures and handed over the goods that have not been unloaded on the delivery vehicle to the buyer to complete the delivery. The seller must bear all risks and costs before the goods are delivered to the designated destination, including any taxes and fees payable when completing customs import procedures at the destination (including the responsibility and risk of completing customs procedures, and paying handling fees, tariffs, taxes and other fees).
Under the EXW term, the seller bears the least responsibility; under the DDP term, the seller bears the greatest responsibility. If the seller cannot obtain an import license directly or indirectly, this term should not be used. However, if the parties wish to exclude all fees to be paid at the time of import (such as value-added tax) from the seller’s obligations, it should be clearly stated in the sales contract. If the parties want the buyer to bear the risks and costs of import, the DAP term should be used.
DDP terms apply to all modes of transport, including multimodal transport.
1. Obligations of the Seller
(1) Sign a transport contract to transport the goods to the designated destination in the country of import by the usual route and in the usual manner, and pay the freight.
(2) Place the goods at the disposal of the buyer at the designated destination in the country of import at the time specified in the contract.
(3) Bear all risks and expenses before the goods are disposed of by the buyer at the designated destination in the country of import.
(4) Obtain official export and import certificates at its own risk and expense, and complete all customs formalities required for the export and import of goods, and pay export and import duties and other related fees.
(5) Submit relevant documents specified in the contract, such as commercial invoices and delivery notes, or electronic records or procedural certificates with equivalent effects.
2. Obligations of the Buyer
(1) Accept the relevant documents provided by the seller, receive the goods at the designated destination in the country of import at the time specified in the contract, and pay the purchase price in accordance with the contract.
(2) Bear all risks and expenses after receiving the goods at the designated destination in the country of import.
(3) Assist the seller in obtaining official export certificates and completing customs formalities required for the import of goods at the seller’s risk and expense.