Understanding who takes responsibility for a shipment can often be confusing, especially with international shipping. The term DDP Shipping (Delivered Duty Paid) outlines the division of responsibilities in a shipping contract, dictating who handles the shipping, costs, duties, taxes, and customs clearance.
DDP Shipping is an international shipping agreement where the seller assumes full responsibility for delivering the goods to the buyer’s door. Under DDP Shipping terms, the seller covers all costs, including shipping, duties, taxes, and customs clearance, ensuring the goods are delivered to the agreed destination without any extra costs for the buyer.
This Incoterm, developed by the International Chamber of Commerce (ICC), is commonly used in global trade. DDP Shipping is ideal for buyers who want a hassle-free experience, as they do not have to manage customs or worry about additional fees.
When using DDP Shipping, businesses transfer the complexities and risks of international shipping to a trusted service provider, like TecEx. Here’s what we handle for you:
- All risks and responsibilities related to the shipment
- Handling of import/export clearance and documentation
- Payment of duties, taxes, and other compliance costs
- Managing all customs formalities—no matter what transport method is used.
At TecEx, we specialize in providing seamless DDP Shipping solutions with years of expertise in making customs clearance simple and seamless. Let’s dive into the details of DDP Shipping, how it works, and how it can benefit you and your business.
Benefits of DDP Shipping
Security for Buyers
When you opt for DDP Shipping, the buyer doesn’t need to worry about surprise charges. All costs—shipping, duties, and taxes—are taken care of by the seller, offering full transparency and reducing uncertainty.
Complete Control for Sellers
Sellers who use DDP Shipping retain complete control over the entire shipping process. By managing everything from shipment preparation to final delivery, sellers can ensure goods arrive on time and undamaged, and they can choose the most cost-effective shipping routes.
How TecEx Makes DDP Shipping Simple
We offer a comprehensive DDP Shipping solution that covers all the details—before, during, and after shipment. With our Importer of Record (IOR) solution, we make customs clearance easy and ensure all documents are in order. Furthermore, you can track your shipment in the TecEx App which gives you full visibility of your shipment.
Whether you’re a large business or a value-added reseller (VAR), our DDP shipping solution ensures smooth and reliable shipping across the globe!
DDP Shipping Responsibilities: What Sellers Need to Know
Under DDP Shipping terms, sellers must handle all of the following responsibilities:
- Meeting import/export and customs requirements
- Transportation and shipping costs
- Carrier fees, inspections, and handling of damages
- Customs clearance in the buyer’s country
- Securing necessary export/import licenses and approvals
- Export clearance in the seller’s country
- Providing proof of delivery
- Notifying the buyer when goods arrive at the destination
However, it’s important to note that while the seller manages the entire shipping process, unloading the goods at the buyer’s location is the buyer’s responsibility.
Difference Between DDP, DAP, and DPU (formerly DAT)
Understanding the differences between DDP, DAP, and DPU is essential when choosing the right shipping option for your business.
- DDP Shipping (Delivered Duty Paid): The seller handles all costs and responsibilities related to shipping, customs, and delivery.
- DAP Shipping (Delivered at Place): The seller covers shipping, but the buyer is responsible for customs duties and taxes.
- DPU Shipping (Delivered at Place Unloaded): The seller is responsible for shipping and unloading at the destination, while the buyer handles customs and taxes.
Read more in our full guide to the difference between DDP, DAP, and DAT.
The TecEx DDP Shipping Process
Pre-shipping
01 Compliance
Each country has its own laws and regulations regarding customs compliance. Our extensive knowledge of these regulations means we manage everything you need pre-shipping, from product classifications, HS codes, and ECCN numbers.
02 Licenses and Permits
TecEx will apply for all the relevant import/export licenses and permits you need on your behalf, removing the burden from your business.
03 Cost Calculation
Before you ship your goods, it’s important to understand the costs to accurately predict the financial impact of importing into a foreign territory. This includes import costs, duties, taxes, customs valuations, and IOR fees. TecEx will calculate these costs for you, so you have a clear financial picture before your goods are shipped.
In-transit
04 Pick Up
We pick up your goods, no matter the location – for example, from a warehouse or manufacturing plant.
05 Manage Global Logistics
You can choose your own carrier or rely on our network of freight providers to get the best rates.
06 Customs Clearance
As your IOR, we take on all responsibility for customs clearance. We pay duties and taxes and guarantee first-time clearance of your IT gear.
Post-clearance
07 Storage
If necessary, we will arrange storage for your goods at the destination, ensuring your shipment is secure.
08 Final Delivery
We’ll arrange final delivery to your final delivery address, so you don’t have to rely on a third party to do this for you. We have a global capability of shipping to over 200 destinations.
09 Installation and Equipment
Once your shipment has been delivered, we can hire any necessary equipment and install the goods, too.
DDP Shipping Fees
Some common fees that are involved in a DDP shipping transaction include:
- Customs duties
- Shipping fees
- Shipping insurance: Shipping insurance isn’t essential, but it’s worth investing in to mitigate any risks and protect your finances.
- VAT: With a DDP shipping agreement, the seller is responsible for VAT. In some countries, VAT can sometimes be 15-20% of the value of the goods. Need assistance with VAT Recovery?
- Damage fees: As the seller, you’re responsible for any fees associated with damages to your goods.
- Storage and demurrage: Storage and demurrage charges are caused by delays from customs authorities, carriers, delivery drivers, and other third parties. As the seller, you must absorb these costs.
DDP Shipping FAQs
Is DDP shipping safe?
With a reliable import partner to help you navigate customs clearance, DDP is a safe and reliable way to import your goods across borders.
What are the risks of DDP shipping?
- There may be unexpected fees, for example, if your goods are delayed or get damaged.
- Customs clearance requires specialist knowledge, as each country has its own regulations. This can lead to costly mistakes if you’re not an expert.
- Sellers take on responsibility for the entire shipping process, which means that if anything goes wrong, you have to incur the costs.
TecEx’s Complete Global Trade and DDP Shipping Solution
TecEx’s DDP shipping service can help you ship to over 200 destinations with ease. DDP shipping is complex and, when handled incorrectly, can significantly impact your profits. We manage everything—from shipping logistics to customs clearance—so you can focus on growing your business while we handle the rest.
Now You Know:
The first set of Incoterms was published in 1936. These shipping rules are revised every ten years to reflect changes in trade practices. Currently, the most recent version is Incoterms 2020.
Don't Let DDP Get You Down. Get In Touch.
Fill in the form to get in touch, and our expert team will contact you with a bespoke customs compliance solution to suit your needs.
Don’t Let DDP Get You Down. Get In Touch.
Fill in the form to get in touch, and our expert team will contact you with a bespoke customs compliance solution to suit your needs.
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