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Incoterm DDP

Parts and Equipment
From Central African Republic
To Brazil
446 views / 0 experts
David W.
Sep 07, 2020
A customer has asked us to send a shipment to Brazil using the Incoterm DDP. Is this OK to do?

1 answer

Sep 07, 2020

Delivered Duty Paid (DDP) is a term where the seller is responsible for the import duties and taxes of the shipment in the country of import. If a company is aware that these charges would be for their account and doesn’t impact on the profitability, then may be the company would opt to use this term.

However, in the majority of B2B shipments, this can result in charges for the seller that would impact on profitability, due to a lot of “unknown” costs that could be applied to the sellers account.

Another issue is that some countries require the buyer to be registered as an importer in the country of import, which restricts the use of this term. For example you cannot ship goods DDP to Russia with DHL.

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