What does DDP mean in international transportation?

1, Definition of DDP
DDP, The full name is Delivered Duty Paid, which means "Delivered Duty Paid (designated destination)" in Chinese. According to Incoterms, under DDP terms, the seller is responsible for all risks and costs associated with transporting the goods to the designated destination, including transportation, insurance, customs clearance, and import taxes at the destination. Once the goods are delivered to the buyer at the designated destination, the seller fulfills the delivery obligation.
2, The characteristics of DDP
The seller assumes full responsibility: Under DDP terms, the seller is not only responsible for the transportation and insurance of the goods, but also for the import customs clearance procedures and tax payment at the destination. This comprehensive responsibility requires the seller to have strong logistics capabilities and understanding of the legal provisions of the destination country in international trade.
Convenient and worry free: For buyers, the transaction method under the DDP term is extremely convenient. The buyer does not need to bear any costs or risks, nor does they need to participate in any transportation and customs clearance processes. They only need to receive the goods at the designated destination. This transaction method greatly reduces the operational difficulty and cost for buyers.
Applicable to various modes of transportation: The DDP term applies to all modes of transportation, including sea, air, land, etc. This makes the DDP term widely applicable in international trade.
3, The impact of DDP on both buyers and sellers
The impact on the seller: For the seller, although the transaction method under the DDP term can provide convenience for the buyer, it also brings high costs and risks to the seller. The seller shall bear all costs and risks from the origin to the destination, including transportation, insurance, customs clearance, and import taxes at the destination. In addition, the seller also needs to have strong logistics capabilities and understanding of the laws and regulations of the destination country to ensure that the goods can arrive at the destination smoothly and complete delivery. These requirements require the seller to bear significant responsibility and pressure in transactions under DDP terminology.
The impact on buyers: For buyers, the transaction method under the DDP term is extremely convenient. The buyer does not need to bear any costs or risks, nor does they need to participate in any transportation and customs clearance processes. They only need to receive the goods at the designated destination. This transaction method greatly reduces the operational difficulty and cost for buyers, enabling them to focus more on their own business development and market expansion.
4, Application scenarios of DDP terminology
The DDP term is applicable to buyers who wish to reduce operational difficulty and costs, and improve transaction efficiency. Meanwhile, for sellers with strong logistics capabilities and a deep understanding of destination country laws and regulations, DDP terminology is also a feasible choice. However, it should be noted that due to the significant responsibility and risk that the seller bears under DDP terminology, various factors need to be carefully selected and fully evaluated in practical operation.