Paid Customs (DDP) is a transit agreement that puts maximum liability on the seller. In addition to shipping costs, the seller is required to provide import assistance, payment of taxes and import duties. The risk is transferred to the buyer as soon as the goods are made available to the buyer in the destination port. The buyer and seller must agree on all payment details before the transaction is completed and indicate the name of the destination. The customs obligation provided (DDP) is a delivery contract by which the seller assumes full responsibility, risk and costs associated with the transport of goods until the buyer receives or transfers them to the destination port. This agreement includes payment of shipping, export and import duties, insurance and all other expenses incurred during shipping to an agreed location in the buyer`s country. The seller must prove the delivery and pay the costs of all inspections and inform the buyer as soon as the goods have been delivered to the agreed location. In the case of a DDP transaction, the seller is responsible for the cost of the loss or loss of the goods during transportation. The seller arranges transport by a courier of any kind and is responsible for the costs of that carrier and the acquisition of customs clearance in the buyer`s country, including obtaining the corresponding authorizations from the authorities of that country. In addition, the seller may be required to acquire an import license. However, the seller is not responsible for unloading the goods. For U.S. importers, since the seller and his forwarder control the transportation, the importer has limited information about the supply chain.
In addition, a seller can replenish his prices to cover the liability costs for DDP shipping or marking invoices. In some cases, freight bills were reported between $3,000 and $7,000. If the RFP is mishandled, incoming shipments will likely be screened by customs, resulting in delays. Late shipments can also occur because a seller can benefit from cheaper and less reliable transportation services to reduce costs.