Definition: DDP is an Incoterm where the seller assumes full responsibility for transporting goods to the buyer's destination, including all associated costs and risks. This includes export and import duties, taxes, and customs clearance.
- Arranging and paying for transportation to the destination.
- Export customs clearance and payment of export duties.
- Import customs clearance and payment of import duties and taxes (e.g., VAT).
- Delivery of goods to the agreed destination.
- Receiving the goods at the agreed destination.
- Unloading the goods (unless otherwise agreed).
- Simplifies the buying process for the customer.
- No unexpected costs upon delivery.
- Seller manages all logistics and compliance.
- Seller bears all risks and costs until delivery.
- Requires the seller to have knowledge of the buyer's country's import regulations.
Under DDP terms, the freight forwarder can handle customs clearance in the destination country (e.g., Canada or the USA) on your behalf. However, you need to provide your importer company information, as the import declaration will be made in your company’s name. This means: the customs documents will show your company as the importer, and duties and VAT need to be paid through your importer account. Simply: DDP means importing under your company’s name, with you assuming the official importer status and the associated taxes and fees.
Definition: This service involves the freight forwarder handling both export and import customs clearance and paying all applicable taxes and duties. The goods are delivered to the buyer without additional charges.
Service Features
1.Export customs declaration in the origin country.
2.Import customs clearance in the destination country.
3.Payment of all import duties and taxes.
4.Delivery of goods to the buyer.
Benefits
1.Streamlined process with a single point of contact.
2.Predictable costs with no surprise fees.
3.Suitable for small businesses or individuals unfamiliar with customs procedures.
Considerations
May not be suitable for high-value goods due to potential cost implications.
Summary
If you don't need customs declaration documents and don't want to use your company's import account, the freight forwarder will complete the customs clearance and tax payment under the name of their partner company.
You will not need to pay any additional duties or VAT.
At the same time, since the import is not declared under your company's name, the freight forwarder will not provide you with customs or tax documents.
All you need to do is receive the goods.
In simple terms: Double Clearance & All Duties and Taxes Paid means the freight forwarder takes care of customs clearance and tax payment—you just receive the goods, without involving your company's name.
Comparison Table
| Item | DDP | Double Clearance & All Duties and Taxes Paid |
|---|---|---|
| Customs Clearance | Handled by seller | Handled by freight forwarder |
| Payment of Duties & Taxes | Paid by seller | Paid by freight forwarder |
| Delivery Charges | Included in the total cost | Included in the total cost |
| Documentation Provided | Import documents provided to buyer | Import documents not provided |
| Control Over Import Process | High | Low |
Which Option Should You Choose?
Choose DDP
if you prefer a hands-off approach where the seller manages all aspects of the shipping and customs process, ensuring a seamless delivery experience.
Choose Double Clearance & All Duties and Taxes Paid
if you seek a simplified process with a single point of contact, especially if you’re shipping smaller quantities or are less familiar with international shipping procedures.
If you need further assistance or a tailored shipping solution, please contact us. Our team is here to help you navigate the complexities of international shipping and find the best option for your needs.