Legal regulations vary on delivery duty paid (DDP) based on the products being shipped as well as the location they are being sent to. Generally in the United States, however, DDP requires the seller (who is in most cases also the shipper) to bear all the costs and risks of shipping the products. This includes shipping costs, duty fees and any other expenses incurred while shipping the goods.

In a DDP transaction, the seller is responsible in full for the goods until they have been received and transferred to the buyer. This shifts the burden of risk in the transaction to the seller, so if the goods are damaged or lost while being shipped, the seller must absorb the loss. For example, if a buyer purchases a glass vase online that is then broken while being shipped, the seller is responsible for replacing the vase and ensuring the buyer receives the product. In many cases the seller may have insurance to help cover the costs. The seller usually pays any import duty, so the buyer can receive the package without having to pay any additional fees.

The port of delivery is also important in a DDP transaction because it is usually the point where legal ownership and responsibility of the goods is transferred to the buyer. Packages are often marked with a location as well as a duty paid stamp for this reason. For example, a package shipped through a New York port may be stamped DDP-New York. At this point, responsibility for the package shifts to the buyer, who will be responsible for any damage to the package or insurance costs. The buyer is also considered to have legal title to the goods at this point.

Duty fees vary from product to product and may also vary based on which countries the items are being shipped to. For this reason, it is always best to consult with attorneys and the regional duty agency or the United Nations Commission on International Trade Law (UNCITRAL) before shipping products.

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