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Simple English definitions for legal terms
delivered duty paid
Read a random definition: hypothecate
A quick definition of delivered duty paid:
Delivered Duty Paid: This is a term used in business deals where the buyer and seller agree on the responsibilities for delivering goods, making payments, and taking risks. When a seller agrees to deliver goods "delivered duty paid," it means they are responsible for paying all the taxes and fees associated with getting the goods to the buyer's location. The buyer only needs to pay the agreed-upon price for the goods and take possession of them once they arrive.
A more thorough explanation:
Definition: Delivered Duty Paid (DDP) is a term used in a commercial contract that outlines the responsibilities of the buyer and seller regarding the delivery, payment, and risk of loss of goods. In this agreement, the seller is responsible for delivering the goods to the buyer at the agreed-upon location, and the buyer is responsible for paying for the goods and any associated taxes or duties.
Example: A company in the United States orders 1000 widgets from a manufacturer in China. The manufacturer agrees to deliver the widgets to the company's warehouse in the US, and the contract specifies that the delivery will be DDP. This means that the manufacturer is responsible for all costs associated with delivering the widgets to the warehouse, including transportation, insurance, and any customs duties or taxes. The company is responsible for paying the manufacturer for the widgets and any associated costs.
Explanation: In this example, the manufacturer is responsible for delivering the goods to the buyer's warehouse in the US, and the buyer is responsible for paying for the goods and any associated costs. The DDP agreement ensures that the buyer knows exactly how much they will be paying for the goods, as all costs associated with delivery are included in the contract. This type of agreement is common in international trade, where there may be additional costs associated with importing goods into a country.