DDP Delivered Duty Paid
In Incoterms DDP the seller fulfils his obligation to deliver when the goods have been available at the named place in the country of importation. The seller has to bear the risks and costs including duties, taxes and other charges of delivering the goods thereto, cleared for importation. While EXW Ex Works term represents the minimum obligation for the seller, DDP represents the maximum obligation. This term should not be used if the seller is unable to directly or indirectly to obtain import licence. If the parties wish the buyer to clear the goods for importation and to pay the duty, the term DAP (delivered at place) should be used. If the parties wish to exclude from the seller´s obligations some of the costs payable upon importation of the goods (such VAT- Value Added Tax), this would be made clear by adding words to this effect: Delivered Duty Paid, VAT unpaid. This Incoterms may be used irrespective of the mode of transport. See Incoterms for a list of the eleven Incoterms. Practical Guide to Incoterms.