incoterm ddp definition

incoterm ddp definition refers to the Incoterms rule known as Delivered Duty Paid (DDP), which is one of the international trade terms used to specify who is responsible for paying the shipping costs, duties, and taxes during the shipment of goods. Under DDP, the seller assumes responsibility for delivering goods to the buyer’s location, covering all costs associated with shipping, customs clearance, and delivery, including import duties and taxes. This term is often used in international transactions where the seller prefers to manage the entire shipping process and ensure that the buyer receives the goods without needing to deal with additional charges upon arrival. DDP provides a clear and predictable cost structure for both the seller and the buyer, reducing the likelihood of unexpected expenses. It’s important for businesses to understand the obligations under DDP, as they are responsible for handling all aspects of shipping until the goods are delivered to the buyer’s door.