DDP
Delivered Duty Paid
Under DDP (Incoterms® 2020), the seller does almost everything: it delivers the goods to the named place in the buyer's country, clears them for import, and pays the import duties and taxes.
In plain words
DDP gives the seller the most work and risk, and the buyer the least. The risk passes when the goods arrive at the named place, ready for unloading. The buyer only unloads the goods, unless the contract says otherwise.
The seller must be able to handle import clearance in the buyer's country. In some countries, only a local company can be the importer, or the seller cannot reclaim the import VAT it pays. Check this before you agree to DDP. If the seller cannot import, DAP is usually the safer choice. The parties can also agree that some taxes, like VAT, are excluded.
Example from real shipping
A Turkish company sells display stands to a retailer in Germany on “DDP retailer's warehouse, Cologne, Incoterms® 2020” terms. The company uses a forwarder that can act as the importer's representative in Germany. The forwarder clears the goods and pays the duty and import VAT, and the retailer simply receives the stands.
Related terms
- DAPUnder DAP (Incoterms® 2020), the seller delivers the goods to a named place in the buyer's country, ready for unloading. The buyer unloads the goods, clears them for import, and pays the import duties and taxes.
- EXWUnder EXW (Incoterms® 2020), the seller only makes the goods ready at its own premises. The buyer arranges and pays for everything after that, including loading and export clearance.
- Landed costLanded cost is the total cost of getting a product to your door: the price of the goods plus freight, insurance, duties, taxes, and all other fees on the way.
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Request a QuoteThis glossary is general information, not legal or customs advice. Rules, fees, and practice can differ by carrier, port, and country.