The DDP incoterms term, despite being widely used in the import sector, when a professional decides to start in this field or simply delve deeper into certain specialized terms, finds himself in doubt about not knowing exactly what these technical words refer to.
Just a few days ago, we talked about FOB and its importance in maritime or river transactions. Today it’s the turn of the DDP term and its implications in imports.
This international trade clause or incoterm uses the acronym DDP in reference to Delivery Duty Paid. It is important to note that in any document where this clause appears, the acronym will always be accompanied by the city where the destination warehouse of the transaction is located. For example, DDP Madrid.
In this case, both the seller and the buyer once again have different and diverse responsibilities. However, the DDP incoterm is characterized by implying the maximum obligations on the part of the seller, provided that the seller holds the import license.
And what does the maximum obligations mean? Well, that the seller must pay all expenses necessary until the merchandise reaches the agreed zone in the destination country, thus, the expenses generated by customs importation must also be assumed by the selling company.
Likewise, the fact that the DDP incoterm is multimodal implies that it can be used in any mode of transport of the goods, as opposed to what happened in the case of FOB. However, the buyer will also be subject to a series of obligations that are no less important.
Therefore, if you are interested in carrying out an import transaction or you are interested in knowing more about what DDP is, consult us without obligation and we will be happy to assist you.
