| Incoterms® Rule | Confirm that the quotation expressly states DDP [named place], Incoterms® 2020, rather than using “DDP” as a general marketing term. | The seller generally bears the cost and risk of transporting the goods to the named destination, including import clearance, duties, and import taxes required under the agreed rule. | Commercial quotation, sales contract, purchase order, and written service scope. | Ask whether destination charges, customs fees, duties, and taxes are included or billed separately. |
| Named Delivery Place | Specify the complete delivery address, receiving hours, appointment requirements, dock limitations, and whether residential or commercial delivery is involved. | Arrange delivery to the exact named place and confirm whether unloading is included. | Address validation, delivery SOP, accessorial-charge schedule, and proof-of-delivery format. | Clarify charges for liftgate service, residential delivery, limited access, storage, redelivery, and appointment changes. |
| Product Classification | Confirm the proposed Harmonized Tariff Schedule classification, product description, country of origin, material composition, and intended use. | Prepare or coordinate accurate import-entry information and use reasonable care when classifying the goods. | Classification rationale, entry data, origin statement, and product specification sheet. | Incorrect classification or origin information can result in additional duty, delays, penalties, or examination. |
| Customs Entry Filing | Identify who will act as importer of record, who will submit the entry, and who will respond to customs requests. | Under DDP, the seller is responsible for import clearance, subject to local legal requirements and the ability to act as or appoint an importer of record. | Power of attorney, entry summary, customs release record, and broker authorization. | Confirm whether the buyer must provide a U.S. tax ID, importer details, or a customs bond. |
| Duties and Import Taxes | Request a written breakdown of estimated duty, merchandise processing fees, harbor maintenance fees where applicable, and other import-related charges. | Pay import duties and applicable import taxes required by the agreed DDP arrangement. | Landed-cost worksheet, customs payment record, and post-entry adjustment policy. | Ask how duty changes, customs reassessment, tariff exclusions, and government fees will be handled. |
| U.S. Sales Tax | Confirm whether the quoted price includes state or local sales tax and who is responsible for tax registration, collection, and reporting. | DDP does not by itself determine U.S. state or local sales-tax obligations; these may depend on the seller’s activities, transaction structure, and applicable state rules. | Tax treatment statement, invoice format, exemption documentation, and written responsibility matrix. | Do not assume that “duties paid” automatically means all U.S. sales taxes are included. |
| Regulated or Restricted Goods | Check whether the products require permits, product registrations, safety certifications, labeling, prior notices, or agency review. | Identify applicable government-agency requirements and coordinate compliant documentation when included in the service scope. | Permit checklist, compliance review, product labels, certificates, and agency filing records. | Confirm whether the forwarder accepts batteries, food, cosmetics, chemicals, medical products, or other controlled cargo. |
| Transport Mode and Routing | Compare ocean, air, rail, and truck options using the same shipment weight, volume, origin, destination, and service level. | Select and manage the agreed transport chain through final delivery. | Routing plan, booking confirmation, milestone schedule, and carrier handoff records. | Ask whether transshipment, port changes, congestion, or carrier surcharges can change the quoted price or delivery date. |
| Cargo Insurance | Confirm whether cargo insurance is included, the insured value, covered risks, exclusions, deductible, and claims procedure. | DDP does not automatically require the seller to purchase cargo insurance; risk and insurance should be addressed separately in the contract. | Insurance certificate, policy wording, claim form, and claims-response timeline. | Compare carrier liability limits with the actual commercial value of the goods. |
| Tracking and Communication | Confirm tracking visibility from origin pickup through customs release, inland transit, and final delivery. | Provide shipment milestones, exception alerts, customs updates, and a clear escalation contact. | Tracking portal or reports, milestone definitions, contact list, and escalation procedure. | Ask how quickly customs holds, missing documents, damage, or delivery failures will be reported. |
| Delivery Appointment and Unloading | Confirm whether the destination requires a scheduled appointment, palletized delivery, liftgate, inside delivery, or special handling. | Arrange the agreed last-mile service and communicate any delivery restrictions to the carrier. | Delivery order, appointment confirmation, signed proof of delivery, and accessorial rate sheet. | Clarify whether the buyer must provide labor or equipment to unload the shipment. |
| Storage and Demurrage | Confirm free-time periods, storage rates, terminal charges, demurrage, detention, and the event that starts the billing clock. | Manage cargo movement and notify the responsible party before free time expires. | Free-time policy, terminal notice, storage invoice, and charge-dispute process. | Determine who pays when delays result from customs examination, missing documents, port congestion, or consignee unavailability. |
| Documentation Package | Request the document list required for booking, customs, delivery, accounting, and post-entry recordkeeping. | Prepare or coordinate transport and customs documents included in the agreed service scope. | Commercial invoice, packing list, transport document, origin data, entry records, and proof of delivery. | Check that product values, quantities, weights, descriptions, and country of origin are consistent across documents. |
| Claims and Service Recovery | Confirm deadlines and procedures for reporting shortage, visible damage, concealed damage, loss, delay, or customs-related problems. | Coordinate with carriers, brokers, warehouses, and insurers according to the agreed liability and claims terms. | Terms and conditions, incident report, photographs, survey report, and claim acknowledgment. | Review liability caps, exclusions, notice periods, and whether consequential losses are excluded. |
| Final Landed Cost | Obtain an itemized landed-cost quotation showing freight, customs clearance, duties, import taxes, delivery, fuel surcharges, and possible accessorial charges. | Provide transparent pricing for all services included in the DDP arrangement. | Formal quotation, rate validity period, surcharge table, tax assumptions, and invoice sample. | Ask which charges are fixed, estimated, conditional, or subject to government or carrier adjustment. |