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๐—œ๐—ป๐—ฐ๐—ผ๐˜๐—ฒ๐—ฟ๐—บยฎ ๐——๐——๐—ฃ: ๐—ฆ๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜† ๐—ผ๐—ฟ ๐—ฅ๐—ถ๐˜€๐—ธ ๐—ณ๐—ผ๐—ฟ ๐—˜๐˜…๐—ฝ๐—ผ๐—ฟ๐˜๐—ฒ๐—ฟ๐˜€?

  • Writer: globalmexss2020
    globalmexss2020
  • Sep 12
  • 2 min read

Among all Incotermsยฎ used in international trade negotiations, DDP (Delivered Duty Paid) represents the broadest scope of responsibilities for the seller.


Under this term, the seller/exporter assumes full responsibility for payment and all operational, fiscal, tax, and customs procedures related to the merchandise, both in the country of origin and in the country of destination.

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For clarity, these responsibilities can be classified as follows:

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โœ…๐—ข๐—ฝ๐—ฒ๐—ฟ๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐—ฎ๐—น ๐—ฅ๐—ฒ๐˜€๐—ฝ๐—ผ๐—ป๐˜€๐—ถ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐—ถ๐—ฒ๐˜€: include the production of the goods, packaging, and transportation to the port of shipment. Subsequently, they also cover transportation from the destination port to the location designated by the customer or, in the case of long-term project management, to storage points and possible handling, item selection, repackaging, palletization, and final distribution.


โœ…๐—™๐—ถ๐˜€๐—ฐ๐—ฎ๐—น ๐—ฎ๐—ป๐—ฑ ๐—ง๐—ฎ๐˜… ๐—ฅ๐—ฒ๐˜€๐—ฝ๐—ผ๐—ป๐˜€๐—ถ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐—ถ๐—ฒ๐˜€: involve the payment of taxes and duties to the competent authorities in both the country of origin and the destination country at the time of merchandise arrival.


โœ…๐—–๐˜‚๐˜€๐˜๐—ผ๐—บ๐˜€ ๐—ฅ๐—ฒ๐˜€๐—ฝ๐—ผ๐—ป๐˜€๐—ถ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐—ถ๐—ฒ๐˜€: include registering the product to be exported with the authorities responsible for controlling goods entering and leaving a country. This also encompasses compliance with obligations to freight forwarders, such as payment of international freight, port fees, and surcharges, as well as customs clearance services, both in the exporting and importing countries.


As the concept suggests, ๐——๐——๐—ฃ ๐—ฐ๐—ฎ๐—ป ๐—ฏ๐—ฒ ๐—ฐ๐—ผ๐—ป๐˜€๐—ถ๐—ฑ๐—ฒ๐—ฟ๐—ฒ๐—ฑ ๐—ฎ ๐˜€๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐—ถ๐—ฐ ๐—œ๐—ป๐—ฐ๐—ผ๐˜๐—ฒ๐—ฟ๐—บยฎ, providing the seller with greater autonomy over a significant portion of the supply chain, ensuring better control and operational accuracy. This approach allows for building closer, trust-based relationships with the customer.ย 


๐—ข๐—ป ๐˜๐—ต๐—ฒ ๐—ผ๐˜๐—ต๐—ฒ๐—ฟ ๐—ต๐—ฎ๐—ป๐—ฑ, for a DDP operation to be successful, it is essential that the seller relies on knowledgeable and experienced partners aligned with the principles of this type of operation, especially in the destination country, where the sellerโ€™s involvement tends to be indirect.




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