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Frequently Asked Questions for FBA shipment

What does DDP stand for in logistics?

DDP stands for Delivered Duty Paid. DDP is a delivery agreement in which the seller assumes the responsibility for all the potential risks and costs associated with transporting goods until the buyer received the goods at the destination. The seller needs to pay for shipping costs, export and import duties, insurance, and other costs.






 


For this term, the seller delivers goods until the final point agreed with the buyer with customs import clearance paid and goods unloaded. It represents the maximum risk for the seller. The seller must pay all duties, taxes, VAT and other destination charges. It doesn’t require any party for insurance and can be used for any mode of transportation.


In practice, the seller must know what to do when selling up to final destination with all expenses covered. It is usually applicable for items like courier where the full supply chain cost is under control and with minimum cost variance.