Delivered Duty Paid

Seller Obligation

The exporter must manage every stage of the logistics process from the factory floor to the final warehouse of the purchaser. In a delivered duty paid arrangement, the seller handles export clearance, ocean or air freight and local import formalities.

Risk Transfer

Responsibility for the goods only shifts to the buyer once the shipment is unloaded and cleared at the designated location. If a delay occurs at the port or if additional customs inspections are required, the seller must pay the associated storage and demurrage fees. This arrangement protects the buyer from the volatility of international shipping rates and the complexity of foreign tax systems.

The seller must have a deep understanding of the destination country’s import regulations to avoid unexpected costs.

Landed Cost

Purchasing managers prefer this term because it removes the uncertainty from their procurement budget. The price on the invoice represents the final amount paid, with no hidden fees for brokerage or transport.