DDP Terms and Excessive Risk for Sellers
Interlink編集部DDP Terms and the Heavy Risks for Sellers
DDP (Delivered Duty Paid) is the Incoterm where the seller bears the heaviest burden. The seller must arrange export customs clearance, international transportation, import customs clearance, payment of duties and taxes, and delivery to the specified destination, handing over the cargo to the buyer.
At first glance, this seems convenient for the buyer. However, from the seller's perspective, it means shouldering the import country's customs system, tax matters, import regulations, product certification, local delivery, foreign exchange, and local agent management, resulting in significant practical risks.
A particularly problematic point is whether a foreign company acting as the seller can be the importer in the destination country, properly handle customs duties, VAT, consumption tax, and comply with import regulations and product certifications.
Accepting DDP without sufficient caution may not only erode profits but could also lead to customs clearance inability, additional tax assessments, delivery delays, storage fees, and contract breaches.
Scope Covered in This Article
This article organizes key points related to import customs clearance, duties and taxes, Importer of Record, VAT/GST, import regulations, product certification, local agents, insurance, and freight forwarder practical considerations that concentrate on the seller side under DDP terms.
| Theme | Contents Covered in This Article | Contents to Be Distinguished |
|---|---|---|
| Basics of DDP Terms | We clarify the structure where the seller bears import customs clearance, duties and taxes, and delivery to the specified destination. | Considered not merely as freight-included terms but as conditions including compliance with the destination country's systems. |
| Difference from DAP and DPU | Comparison where DAP leaves import customs clearance and taxes to the buyer, and DPU assigns unloading to the seller. | Delivering to the specified place, unloading, and customs clearance are separate responsibilities. |
| Importer of Record | Clarifies who is the responsible party for import declarations. | Even if under contract it is DDP, the seller may not be able to become the importer in the destination country. |
| Duties, VAT, GST | Discusses tariff rates, taxable value, import taxes, refundability, and tax registration risks. | It is not simply a matter of adding duties to cover all costs. |
| Import Regulations and Product Certification | Confirms import permits, notifications, inspections, labeling, product certifications, SDS, etc. | Customs clearance does not automatically mean the product can be sold or used in the destination country. |
| Relationship with Insurance | Since the seller bears risk until delivery at the specified place, verifies the end point and coverage area of marine cargo insurance. | Marine cargo insurance does not necessarily cover tax risks or regulatory violations. |
| Freight Forwarder Practices | Covers DDP quotations, local customs clearance, tax payments on behalf, agent fees, and confirmation of additional charges. | Ensure DDP is not treated as merely an “all-in freight” condition. |
Basic Structure of DDP Terms
Under DDP, the seller is expected to deliver the cargo to the named destination and carry out import customs clearance and payment of duties and taxes.
The transfer of risk occurs when the cargo is placed at the disposal of the buyer at the named destination, typically on the arrival transport means before unloading.
In other words, the seller must do more than just arrange international transportation. They need to factor in customs clearance in the importing country, customs duties, consumption tax, VAT, GST, and other public charges incurred at import when setting the price, and hand over the cargo locally.
DDP can be applied when the seller fully understands the destination country's systems and has effective local customs, tax, and logistics execution structures. However, accepting DDP without such a structure exposes the seller to uncontrollable risks.
Comparison of DAP, DPU, and DDP
Like DAP and DPU, DDP requires the seller to deliver the cargo to a designated place in the importer’s country, but the treatment of import customs clearance and taxes differs significantly.
| Term | Main Seller Responsibilities | Main Buyer Responsibilities | Practical Differences |
|---|---|---|---|
| DAP | Arranging transport to the designated place | Import customs clearance, duties, taxes, and generally unloading | The seller generally does not take on the destination country’s customs and tax risks directly. |
| DPU | Transport to the designated place and unloading | Import customs clearance, duties, taxes | Seller covers unloading, but import customs and tax usually remain with the buyer. |
| DDP | Transport to the designated place, import customs clearance, duties, taxes | Generally, receipt of cargo | Seller accepts the heaviest burden, including import customs, tax, and regulatory risks in the importing country. |
The difference between DAP and DDP is substantial for the seller. Under DAP, the importer in the destination country is the buyer, simplifying compliance with local laws, import permits, tax registrations, and VAT refunds by the buyer.
Conversely, under DDP, the seller becomes the importer or de facto responsible party for import procedures, exposing them directly to customs clearance failures and tax risks if unfamiliar with local systems.
When a Foreign Company Cannot Perform Import Customs Clearance
The first point to check with DDP is whether the foreign seller can act as the importer in the destination country. Certain countries or regions restrict non-resident companies from clearing customs as importers.
To clear as an importer, a local corporation, tax identification number, importer registration, business number, local address, bank account, licenses, etc., may be required. If the foreign company lacks these and accepts DDP, despite the contract assigning responsibility to the seller, practically customs clearance may be impossible.
In such cases, a local agent, local subsidiary, buyer, customs broker, or fiscal representative may need to be used. Still, it is crucial to clarify who the Importer of Record will be, who pays taxes, and who bears responsibility for import regulatory compliance.
The Issue of Importer of Record
A critical matter under DDP is the Importer of Record (IOR). The IOR is the party responsible for import declarations, including payment of duties and taxes, compliance with import regulations, and accuracy of documentation.
If the seller can act as the IOR in the destination country, the execution of DDP becomes relatively easier to organize. However, if the seller cannot be the IOR, it is necessary to request the local subsidiary or local agent to act as the IOR.
In such cases, it is important to clearly define in the contract whether the agent is merely lending their name or assuming substantive import responsibility.
If the IOR is left ambiguous while proceeding with DDP, issues can arise such as cargo being held up during customs clearance, unclear responsibility for payment of customs duties and taxes, and unclear liabilities in case of import regulation violations.
VAT, Consumption Tax, and GST Issues
Under DDP, not only customs duties but also indirect taxes such as VAT, consumption tax, and GST on import can be borne by the seller. The core problem here is whether the seller can correctly incorporate these taxes into the price and whether the seller can deduct or reclaim the taxes paid.
If the seller is not tax-registered locally and bears the import VAT, it may not be possible to obtain a refund later. In such cases, the taxes become a direct cost to the seller, shrinking profit margins originally calculated at the quotation stage.
Additionally, the taxable import value may be influenced not only by the product price but also by freight, insurance, royalties, mold costs, supplied materials, and related-party transactions. Incorrect estimation of the taxable price can lead to unexpected tax liabilities after receiving orders under DDP pricing.
Risks of Misidentification of Duty Rates and Taxable Values
Under DDP, misjudging customs duty rates directly translates into losses for the seller. If the HS code classification is incorrect and a higher duty rate applies than expected, the seller’s profit decreases. In some cases, this could lead not only to losing profit but also to operating at a loss.
Moreover, importing country customs authorities may reject the declared price and adjust the taxable value. When transactions involve related parties, free supplied goods, technical fees, license fees, design costs, or mold fees, the taxable value assessment becomes more complex.
Since sellers under DDP often bear these additional duties or supplementary taxes, it is necessary to confirm HS codes, duty rates, taxable values, and import taxes in advance.
Import Regulations, Other Legal Requirements, and Product Certification Issues
With DDP, the seller may effectively bear the cost of complying with import regulations in the destination country. The issue is not just transporting the cargo, but ensuring the goods can be legally sold or used locally, which requires adherence to various laws.
For example, electrical products, telecommunications equipment, medical devices, foodstuffs, chemicals, machinery, hazardous goods, children’s products, and building materials may require import permits, notification, inspection, labeling, product certification, Safety Data Sheets (SDS), and conformity certificates before import.
If the seller accepts DDP without sufficiently confirming these requirements, problems such as cargo being unable to clear customs upon arrival, inability to sell locally, incurring local storage charges, return shipments, or disposal may occur.
Utilization of Local Agents, Local Subsidiaries, and Fiscal Representatives
Implementing DDP requires a robust local structure. If the seller has a local subsidiary in the destination country, they can conduct importer registration, tax registration, customs clearance, and tax payment through that subsidiary.
If there is no local subsidiary, the seller may use local agents, customs brokers, or Fiscal Representatives. However, the extent of responsibilities these parties assume, whether they advance taxes, can become the importer of record, or comply with regulatory requirements varies by country and contractual agreements.
Even when using local agents, the seller should not fully delegate responsibility but must verify cost structure, scope of responsibilities, tax risks, compliance with import regulations, and document retention obligations. The ability of an agent to clear customs does not equate to the elimination of the seller’s risks.
Damage Patterns from Recklessly Accepting DDP
Under DDP, not only transportation costs but also hidden costs incurred within the importing country tend to concentrate on the seller. Therefore, simply adding customs duties on top of CIF or DAP prices is a risky approach.
| Damage Pattern | Cause | Impact on Seller |
|---|---|---|
| Excess Customs Duties and Taxes | Errors in estimating HS codes, taxable values, VAT, etc. | Leads to profit reduction and potential loss-making. |
| Inability to Clear Customs | Seller cannot be the importer or lacks import licenses | Causes delivery delays, storage charges, and breach of contract. |
| Violation of Import Regulations | Inadequate certification, marking, permits, or inspections | Could result in import bans, returns, disposal, and fines. |
| Non-Refund of VAT | Seller not locally tax-registered | Taxes become unrecoverable costs. |
| Increased Local Agent Costs | IOR arrangements, tax advances, special customs procedures | Additional charges could eliminate quoted profit margins. |
| Delivery Destination Issues | Restrictions on delivery site access, unclear unloading conditions | Results in waiting fees, redelivery costs, and damage risks. |
Relationship with Insurance
Because the seller bears risk up to the named place under DDP, arranging cargo insurance is practically important. However, DDP does not inherently impose a cargo insurance obligation on the seller under Incoterms.
Nevertheless, since the seller assumes risk until handing over to the buyer at the destination, they need to design insurance coverage addressing accidents during international transit, import customs clearance, storage, and local delivery.
Additionally, cargo insurance generally covers physical damage to the goods but does not automatically cover losses from customs duty misestimations, non-recoverable VAT, import regulation violations, contractual penalties, or losses caused by delivery delays.
It is important to recognize that many DDP risks cannot be fully absorbed by cargo insurance alone.
Step-by-Step Flow of DDP Transactions
With DDP terms, the seller is responsible for numerous checks from the sales contract, quotation, export/import customs clearance, tax payments, delivery to the named place, and final handover.
| Stage | Main Tasks | Matters to Confirm | Actions if Problems Arise |
|---|---|---|---|
| At Sales Contract | Agree on DDP terms and designated place | Confirm designated place, unloading responsibility, importer, tax liability, and treatment of additional costs. | If DDP execution is not feasible, consider changing to DAP or DPU. |
| At Quotation Preparation | Estimate transport fees, customs duties, taxes, agent fees | Confirm HS codes, taxable value, VAT/GST, customs clearance fees, local delivery charges. | State any uncertainties as assumptions and avoid unlimited liability. |
| Pre-Shipment Confirmation | Confirm customs clearance feasibility on import country side | Check if seller can be the IOR, if a local agent is needed, or if import permits are required. | If the IOR cannot be secured, it may be necessary to decide not to execute DDP. |
| Export and International Transport | Seller arranges export customs clearance and international transport | Confirm transport route, insurance end point, local ETA, required documents. | If insurance coverage does not extend to the designated place, consider additional coverage. |
| Import Customs Clearance | Seller-side performs import declaration and tax payment | Check IOR, customs duties/VAT/GST, other regulations, taxable value, document contents. | If tax amounts or clearance conditions differ from estimate, check contract adjustment clauses. |
| Local Delivery | Deliver cargo to designated place | Confirm delivery location, delivery conditions, detention fees, redelivery fees, unloading responsibility. | If delivery conditions are unclear, confirm in advance with buyer. |
| Designated Place Handover | Leave disposition to the buyer | Confirm cargo condition, receipt, POD, before and after unloading, risk transfer timing. | If damage occurs, document with photos and notify insurance company and relevant parties. |
| Post-Delivery Settlement | Confirm additional fees and tax treatment | Check additional taxes, storage fees, agent fees, VAT refund eligibility, document retention obligations. | Organize responsibility for additional fees based on contract terms. |
Items the Seller Should Confirm
When the seller agrees to DDP, it is necessary to confirm import country customs, tax, and regulatory requirements before order acceptance.
| Confirmation Timing | Party to Confirm With | Matters to Confirm | Actions if Problems Arise |
|---|---|---|---|
| Before Order Acceptance | Buyer, local agent, customs broker | Whether seller can be the importer in the import country, and who will be IOR | If seller cannot be IOR, consider switching to DAP or arranging local agent. |
| At Quotation | Customs broker, tax officials, local agent | HS codes, tariff rates, VAT/GST, taxable value, refund availability | If tax amounts are unclear, specify assumptions and adjustment clauses in the quote. |
| Pre-Shipment | Buyer, regulatory affairs, local customs broker | Import regulations, product certification, permits, notifications, inspections, labeling | If unable to comply with import regulations, stopping shipment may be necessary. |
| Local System Check | Local corporation, Fiscal Representative, local agent | Tax registration, tax payment advance, document retention, scope of responsibility, agent fees | Clarify agent's responsibility scope in contract. |
| Delivery Arrangement | Local delivery company, buyer, warehouse | Designated place, delivery conditions, unloading responsibility, detention fees, redelivery fees | If delivery conditions are unclear, confirm cost responsibility in advance. |
| Insurance Confirmation | Insurance company, insurance agency, freight forwarder | Whether marine cargo insurance is valid through to designated place delivery, including storage and local delivery | If insurance gaps exist, add coverage up to the designated place. |
| Contract Terms Confirmation | Buyer, legal, sales representatives | Tax rate changes, HS code changes, customs valuation changes, regulatory compliance cost responsibility | Include adjustment clauses to prevent unlimited additional cost liability by the seller. |
Items the Freight Forwarder Should Confirm
When a freight forwarder receives a DDP quotation request from a shipper, simply calculating transport fees is insufficient.
It is necessary to confirm who will clear customs on the import side, who will pay duties and taxes, and who will be the Importer of Record.
| Confirmation Timing | Party to Confirm With | Matters to Confirm | Actions if Problems Arise |
|---|---|---|---|
| At Quotation Request | Shipper, buyer, local agent | DDP designated place, unloading responsibility, importer name, tax liability | Clearly define the scope of DDP and avoid treating it simply as an all-in freight charge. |
| Local Customs Clearance Confirmation | Local customs broker, local agent | Whether clearance under seller name is possible, feasibility of IOR arrangement | If seller cannot be IOR, propose alternative terms. |
| Tax Quotation | Local customs broker, tax officials | HS codes, tariff rates, VAT/GST, taxable value, tax payment advance | If tax amounts are uncertain, specify estimates, assumptions, and exclusions. |
| Import Regulation Check | Shipper, buyer, local customs broker | Import permits, product certification, labeling, inspections, SDS, other regulations | For regulated items, confirm clearance feasibility before order acceptance. |
| Local Delivery Confirmation | Local delivery company, buyer, warehouse | Designated place, delivery conditions, unloading, detention fees, redelivery fees | If delivery conditions are unclear, exclude additional charges or quote separately. |
| Insurance Confirmation | Shipper, insurance company, insurance agency | Marine cargo insurance up to designated place, incidents during storage and local delivery | Confirm insurance end point matches risk allocation under DDP. |
| Quotation Submission | Shipper, sales representatives | Included costs, excluded costs, tax fluctuations, treatment if clearance fails | Clearly state exclusions and conditions for additional charges. |
Checklist for Confirmation
Under DDP terms, it is important to confirm not only transport fees but also import customs clearance, taxes, IOR, regulations, insurance, local delivery, and additional costs before order acceptance.
| Check Timing | Party to Check With | Items to Confirm | Actions if Issues Arise |
|---|---|---|---|
| Before Contract | Seller, Buyer, Legal, Sales Representative | DDP delivery location, unloading responsibility, importer, tax burden, additional costs | If there are unresolved questions, consider changing from DDP to DAP or another Incoterm. |
| IOR Confirmation | Local customs broker, local subsidiary, agent | Whether the seller can be the importer, who will be the IOR | If an IOR cannot be secured, consider changing terms as DDP execution may be impossible. |
| Tax Amount Confirmation | Customs broker, tax officer, local agent | HS code, tariff rates, VAT/GST, taxable value, refundability | If tax amounts are uncertain, include adjustment clauses in the quote conditions. |
| Regulatory Confirmation | Local customs broker, buyer, regulatory officer | Import permits, product certification, inspections, labels, SDS, other legal requirements | If regulatory compliance is not possible, halt shipment and review terms. |
| Local Agent Confirmation | Fiscal Representative, local subsidiary, customs broker | Scope of responsibility, tax advances, document retention, agency fees | Confirm by contract whether the agent is a nominal holder or bears substantive responsibility. |
| Insurance Confirmation | Insurance company, insurance broker, freight forwarder | Marine cargo insurance coverage until delivery at specified location, during storage, local delivery, before and after unloading | If there are coverage gaps, extend the insured period accordingly. |
| Delivery Confirmation | Local delivery company, buyer, warehouse | Specified location, delivery conditions, vehicle restrictions, unloading, waiting fees | If conditions are unclear, treat additional costs separately. |
| In Case of Accident or Delay | Buyer, customs broker, insurance company, local agent | Customs clearance failure, additional taxes, storage fees, damage, risk of contract breach | Analyze the cause, verify who bears responsibility under contract, and check insurance response. |
Common Practical Issues
Under DDP terms, if the seller misjudges import country systems or costs, physical transport may proceed, but customs clearance, tax, or regulatory compliance could cause delays or stoppages.
| Case | Common Issues | Documents to Check | Practical Measures |
|---|---|---|---|
| Foreign seller unable to be importer, resulting in customs clearance failure | Non-resident companies cannot register as importers, so despite a DDP contract, customs clearance may not be practical. | Importer registration requirements, local customs broker responses, sales contract, IOR confirmation documents | Consider using a local subsidiary, agent, buyer as IOR, or switching to DAP. |
| Incorrect HS code leading to higher-than-expected tariffs | The tariff rate used in the quotation was incorrect, eroding DDP price profitability. | HS code determination documents, tariff schedules, invoices, product descriptions | Have local customs broker confirm HS codes before order acceptance. |
| Seller bears tax due to inability to obtain VAT refund | The seller is not registered for local tax, so import VAT cannot be deducted or refunded. | Tax registration documents, VAT payment proofs, local tax confirmation, agency contract | Confirm refundability during quoting and factor unrecoverable taxes into the price. |
| Goods held due to missing import regulations or product certification | Necessary certifications, labeling, permits, and inspections are lacking, preventing customs clearance or sale. | Product specifications, certification documents, SDS, labels, import permits | Check import regulations before shipment; if not compliant, halt shipment. |
| Local agent fees exceeded expectations | Additional charges incurred for IOR arrangement, tax advances, special customs clearance, document storage. | Agent quotations, customs cost breakdowns, tax advance conditions, contracts | Incorporate agent fees into the DDP price and clearly specify excluded costs. |
| Waiting and re-delivery fees due to unclear delivery conditions at destination | Insufficient confirmation of vehicle restrictions, unloading equipment, receiving hours increases local delivery costs. | Delivery instructions, POD, waiting fee statements, delivery condition documents | Confirm delivery conditions at the specified location with the buyer in advance. |
| Seller’s insurance does not cover until delivery at specified location | Although risk should be borne by seller under DDP until specified location, insurance ends at import port. | Insurance policy, From/To fields, delivery arrangement documents, incident reports | Extend insurance coverage period until delivery at the specified location. |
| Additional taxes imposed after customs valuation adjustment | Royalty, mold costs, supplied materials, and related party prices were not reflected in taxable value. | Sales contract, pricing documents, related cost materials, customs inquiry records | Check components of taxable value beforehand and include adjustment clauses. |
Examples
Example 1: Foreign seller unable to be importer, resulting in customs clearance failure
An overseas seller sold machine parts to Japan on DDP terms. However, the seller had no local subsidiary or importer registration in Japan and thus could not act as importer in customs declaration.
The cargo arrived in Japan, but without a decided Importer of Record, customs clearance was halted. Storage fees accumulated meanwhile, and the buyer complained about delayed delivery.
In this case, before accepting DDP terms, confirmation was needed on whether the seller could be the importer in the destination country, whether a local agent could be used, or if changing to DAP with the buyer as importer was necessary.
Example 2: Underestimation of tariffs and VAT leads to loss
When quoting a DDP price, the seller only added an estimated tariff on top of the CIF price. However, import VAT was incurred and could not be refunded due to lack of local tax registration.
Furthermore, HS code classification differed, applying a higher tariff rate than expected. As a result, the taxes included in the DDP price were insufficient, significantly reducing the seller’s profit.
In this case, HS codes, tariffs, VAT, refundability, and taxable value should have been confirmed with local customs and tax officers, and an adjustment clause for tax rate or valuation changes should have been included in the quote.
Example 3: Unable to import due to missing product certification
The seller sold electrical equipment under DDP terms but did not confirm the required product certification or label display regulations in the importing country.
After the cargo arrived, a shortage of certification documents was pointed out at customs clearance, and import permission was not granted. As a result, storage charges accrued, and the goods could not be sold at the shipping destination until certification was obtained.
In this case, before accepting DDP, it was necessary to check not only customs clearance but also whether product certification, labeling, inspections, or notifications required for selling and using the product in the importing country were needed.
Practical Measures to Avoid or Modify DDP
If the seller does not have a system for local customs clearance and tax handling, it is practical to avoid DDP and consider changing to terms like DAP or DPU. Under DAP, the seller arranges transportation to the designated place while leaving import customs clearance, duties, and taxes to the buyer.
If DDP is absolutely required, the seller should not simply accept the terms but explicitly state assumptions in the quotation conditions. For example, duty rates, taxes, customs clearance feasibility, import permits, local agent fees, storage fees, re-delivery costs, and unloading conditions should be clearly specified.
Also, regarding changes to tax rates, HS codes, customs valuation, or additional costs due to import regulations, it is necessary to consider contractual adjustment clauses to ensure the seller does not bear these costs without limit.
Common Misunderstandings
| Misunderstanding | Actual Perspective | Practical Notes |
|---|---|---|
| DDP is just CIF plus customs duties | Under DDP, not only customs duties but also import VAT/GST, customs clearance fees, agent fees, regulatory compliance, and local delivery costs are involved. | Estimate including taxes, agent fees, customs feasibility, and regulatory compliance. |
| Under DDP, the seller can do anything locally | Some countries do not allow foreign companies to act as importers or require tax registration. | Confirm whether the seller can act as the Importer of Record before order acceptance. |
| Marine cargo insurance covers DDP risks | Cargo insurance covers cargo damage but does not naturally cover tax misestimation, VAT non-refund, regulatory violations, or contractual penalties. | Separate risks that can be covered by insurance from those managed by contract or taxation. |
| If there is a local agent, the seller’s risk disappears | Even if an agent supports customs clearance, tax liabilities, regulatory violations, document responsibilities, and extra costs may still fall on the seller. | Confirm the agent’s scope of responsibility and cost burden in the contract. |
| Buyers do nothing under DDP | Without buyer cooperation, deliveries to the designated location, product information sharing, regulatory documentation, and acceptance conditions may stall. | Obtain necessary information from the buyer before shipment. |
| Import regulations under DDP are handled by customs agents | Product certification, labeling, permits, notifications, and inspections cannot always be resolved by customs agents alone. | Confirm product-specific regulations in advance. |
| Once a DDP price is quoted, additional costs cannot be claimed | If contract assumptions and adjustment clauses exist, changes in tax rates or unforeseen costs can sometimes be handled separately. | Clarify quotation conditions and exclusions. |
| The difference between DAP and DDP is only taxes | It affects not only taxes but also the importer, customs responsibility, regulatory compliance, tax registration, and agent management. | Verify whether DDP is truly executable in the importing country before choosing it. |
Practical Points of Caution
DDP is convenient for the buyer but a very heavy burden for the seller. Accepting DDP without understanding the importing country's system can turn issues like customs clearance failure, additional taxation, storage fees, certification shortfalls, and delivery delays into major problems for the seller.
In particular, if foreign companies cannot act as importers, or local tax registration is required, fulfilling DDP even if contractually promised may be impossible. In such cases, cooperation from a local agent or the buyer is necessary, which can undermine DDP’s premise.
When using DDP, it is essential to review transport, customs, tax, regulatory, insurance, and local delivery comprehensively to assess if the seller can actually fulfill the terms.
Summary
DDP terms impose a very heavy Incoterms obligation on the seller, who bears customs clearance, duties, taxes, and delivery up to the designated place in the importing country. If the seller lacks a system for local customs, tax, and regulatory compliance, accepting DDP lightly is unadvisable.
Confirming whether the foreign company can be the importer, can handle VAT or consumption tax, can comply with import regulations and product certifications, and can secure local agents is crucial. Without this, quoting DDP prices can lead to significant losses due to additional costs or customs clearance failure.
In practice, even if DDP is requested, first consider switching to DAP. If DDP must be accepted, explicitly clarify in the contract the Importer of Record, duties and taxes, local agents, import regulations, insurance coverage period, and handling of additional costs.
