Posted in Marketing and Strategy Terms, Total Reads: 128
Definition: Delivery Duty Paid
A delivery duty paid is a type of transaction in which the seller buys the goods on the condition that he will take care of all the logistics and all other duties during the delivery process. In this type of transaction all the risk associated with the transportation like insurance etc. are to be covered by the seller.
This delivery duty paid agreement is usually done when the distance of the buyer and seller is large and crosses national and international borders. This agreement makes the buyer safe as after this agreement the buyer will have the goods at his location at the cost that has been fixed apriori.
Large Chinese solar cell manufacturer while selling their products to Indian customer quote a price including the delivery charges to any port in India (like Mumbai). This makes the process haste free for customers as they receive the goods in INDIA and do not have to go through the excise department etc.