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Delivery Duty Paid 

When goods are bought or sold “Delivery Duty Paid” (DDP) it means that the Seller delivers the goods to a place previously agreed to by the seller and the buyer. This can be any location. The agreed place of delivery (e.g. Rotterdam, Venlo, etc.) needs to be specifically named. The main difference with Delivery at Place (DAP) is that the seller takes care of the import formalities. 

Risks and Costs for the Seller

There is no risk and cost for the seller in getting the goods delivered to the buyer. The seller is not even responsible for loading the goods when they are picked up. The seller has to properly pack and label the goods and get them ready for shipment.

This workshop was specifically developed for employees who are involved in international trade and customs related activities on a regular/daily base. Therefore, the workshop is particularly relevant and suitable for (transport)planners and professionals in finance, administration and commerce.

The theory in combination with practical examples works well and clarifying

During this workshop, the following themes will be addressed and discussed:

When goods are bought or sold Cost and Freight (CFR) it means that the Seller is responsible for the delivery of the goods to a ship and loading the goods onto the ship. The seller is also responsible for any customs export documentation and export licences if needed.

Risks and Costs for the Seller

The seller is responsible for arranging and paying for transportation to the ship and is also responsible for loading the goods onto the ship. The risk used to transfer to the buyer when the goods go over the rail of the ship. This was confusing as the risk would transfer when the goods were midair, while the seller was responsible for loading them onto the ship. Since Incoterms 2010 the rail of the ship is no longer mentioned. The risk transfers when the goods are delivered, in other words, placed on the ship. 

You can read more about the most important changes compared to Incoterms 2010 in one of our earlier blogs in the Incoterms series. The Incoterms we explained until now have been terms that are applicable to all modalities, road, rail, water, and air. The Incoterm in this blog is one of the Incoterms specifically for transport over water: Cost, Insurance and Freight (CIF).

The agreed place of delivery (e.g. the terminal) needs to be specifically named. The main difference with Delivery at Place (DAP) is that the seller takes care of the import formalities and transportation to the final destination. The destination needs to be specifically named.

The Incoterms were first introduced in 1930 and have been facilitating global trade ever since. Every ten years they are revised and updated.

The Main Changes

1. Delivery at Terminal (DAT) is now Delivered Place Unloaded (DPU)

The agreed place of delivery (e.g. the terminal) needs to be specifically named. The buyer then takes care of the import formalities and transportation to the final destination. It is very similar to Delivery at Terminal (DAT).