The Quest Newsletter is published quarterly and is designed to provide critical information in the transportation industry. Avalon Risk Management is not responsible for the accuracy or reliability of information contained in articles. The reader/user assumes all risk in the use of such information.

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KNOW YOUR INCOTERMS

DELIVERY DUTY PAID

When a transaction is set up with Delivery Duty Paid, the seller assumes the risk and cost of delivery. With a DDP arrangement, the seller must pay for transporting the goods and is liable for the goods. Only once the goods have been received and transferred to the buyer does the risk shift from seller to buyer. The seller is responsible for all associated fees including shipping, taxes, duties, and other expenses that arise during the transportation process. DDP is the only rule where the seller is responsible for import clearance and payment of taxes and duties. This is not always the best scenario for the seller as the local buyer is sometimes more equipped to handle this process, especially in countries where import clearance can be complicated and bureaucratic. Download Avalon’s Handout for a full list and overview of Incoterms.