Why DDP is becoming more popular in shipping term

DDP Incoterms

DDP is one of the Incoterms rules developed by the International Chamber of Commerce and is widely used in Promotional worldwide sourcing. DDP stands for “Delivered Duty Paid,” which means that the winsell promotion delivers the goods, cleared for our client on the arriving means of transport, and ready for unloading at the named place of delivery.

Why winsell accept all DDP rules with our customers?

Many of our clients imported products from China for the first time. Our DDP rules will help our client avoid any shipping problems while he trades with us.

Winsell bears all the costs and risks involved in bringing the goods to the destination and should clear the goods not only for export but also for import, pay any duty for both export and meaning, and carry out all customs formalities. This rule may be used irrespective of the mode of transport selected and may also be used where more than one mode of transportation is employed.

Where are DDP rules used?

In all documentation, the DDP freight Incoterms is followed by the name of a place like DDP, TORONTO, because under these Incoterms rules, the named place is where delivery takes place and where the risk passes from the seller to the buyer.

DDP Incoterms is usually used by our client who does not want to enter into any transport contract with any entity and would instead let us handle all these responsibilities right up to their door. In DDP shipping, our client has the maximum obligation as it involves the delivery of the goods to them at the agreed destination. In that sense, it may be considered the opposite of EXW, which consists of the buyer picking up the cargo from the seller’s door.

DDP Incoterms

Under DDP Incoterms, the seller is obliged to

  • Take care of all export clearance formalities at the origin, including all export permits, quotas, special documentation, etc., relating to the cargo.
  • Cover the cost of transportation from the parking area to the named place of delivery
  • Arrange contracts of carriage with the various carriers up to the designated place of delivery, including any on-carriages wherever it is applicable
  • Ensure that all risks are covered up to the agreed area of delivery
  • Ensure that the goods arrive at the destination as the risk and responsibility of the seller ceases only when the cargo is at the agreed home of delivery
  • Arrange and pay for customs clearance formalities at the destination port(s), all customs duties and VAT if applicable, and all the carrier charges (s) until the agreed delivery place.

In a DDP trade, the buyer’s activities are limited to

  • Taking care of any further movement from the agreed place of delivery
  • Covering themselves for any risk and insurance past the approved area of delivery

This agreed place of delivery could be

  • The warehouse of the buyer or their agent
  • End user’s premises
  • A border post
  • Or any other point agreed upon between the buyer and seller.

Under DDP Incoterms, neither the buyer nor the seller is obliged to insure the goods, and the Incoterms® rules do not explicitly cover this insurance requirement. This crucial issue must be discussed and agreed upon as part of the sales contract and terms of sale.



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