What does DDP mean in shipping terms? In an international transaction, the incoterm DDP is a form for "delivered duty paid" which applies to both air and marine freight imports, the seller assumes all responsibility for transporting the goods until they reach an agreed-upon destination. Up to the point where the items are delivered to the buyer's location, the seller is responsible for paying all costs associated with the transportation, import duties, taxes, and any other charges. DDP Agreement: Buyers and Seller’s Responsibilities In the DDP shipping term, The supplier (seller) is responsible for all shipping arrangements, including import customs taxes, until the items are delivered to the customer. That means that all import and export expenses are the supplier's responsibility, and the customer is exempt from all expenditures associated with cargo shipment. Buyer’s Responsibilities: As far as procedures go, the buyer is only responsible for getting the goods. When the products are received, the procedure of unloading them is included. Unloading fees are the buyer's duty, so buyers need to know what they are, especially when sending goods to fulfillment locations. The buyer needs to know that this Incoterm only covers the costs of shipping, taxes, and duties on imports and exports. Any other fees will likely be paid by the buyer. Seller’s Responsibilities: Most of the time, the seller will include all shipping costs in one price, which is called "landing costs." This is used as an overall quote for the services. When someone sells something, they'll probably say that the total value of their goods is DDP. When someone gives you a price and adds the Incoterm word DDP to it, it means that the price of the goods includes the cost of delivery and duty. In addition to the deliverable of finished products, the seller bears the following commitments: Creating sales agreements and other connected papers Meeting all requirements for importing and exporting Acknowledging and paying all import and export duties and fees. All shipping costs, including transfer to a final location agreed upon The price of every examination by the government A record of delivery The seller is in charge if there is damage or loss during shipping. Who pays freight on DDP? When you buy something through a DDP deal, the seller pays for all of the shipping costs, as well as any customs fees, import taxes, or VAT. In essence, the seller pays for everything that needs to be done to get the things to the buyer. You should know that the customer is in charge of any costs that come up with moving the goods. Does DDP include Customs Clearance? Under a DDP agreement, import taxes and VAT as well as customs clearance are under the purview of the product's seller. It is not the buyer's responsibility to pay for the costs of clearing customs when they buy goods under this deal.