Question

disadvantage of DDP

disadvantage of DDP

Homework Answers

Answer #1

The DDP or Delivery Duty Paid system means that the seller will be completely responsible for all the risks and payments of shipment until the goods arrive at its required destination.

So the biggest disadvantage of DDP is to make high-risk positions for sellers, as he has obligations to provide the goods to the point of delivery and with sustaining all costs even delayed shipment fees and taxes. Here one more blunder under DDP is that the tax refunds are accrued to the buyer but sustained by the seller.

Thanks & all the best...

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