Are they any instances or trade scenarios where DDP would be

Are they any instances or trade scenarios where DDP would be the preferred choice of an exporter, even with the added burden of responsibility?

Solution

DDP is delivery duty paid. Under DDP the seller has to pay for all transportation costs. Moreover, the seller is responsible for the goods until they are received by the buyer. Thus, the seller bears the risks as well as costs of the good until the goods are delivered to the buyer.

Now, DDP will be the preferred choice of an exporter under the following trade scenarios:

(i) Exporters can cut shipping costs by getting discounts on bulk buying of transportation services. This allows exporters to offer lower price to the importer and thus making them more competitive in the international market.

(ii) When exporters have to keep an eye and control the product quality even during transportation, DDP is the preferred choice as it enables the exporter to ensure that their products are delivered in good condition.

(iii) Use of DDP helps in reducing the administrative procedures for the exporter. This leads to higher efficiencies as well as lower costs.