Incoterms 2020 · Any mode of transport

DDP (Delivered Duty Paid) — meaning, responsibilities & when to use

Under DDP the seller delivers the goods to the buyer's door with everything paid — including import duty. Here's what Delivered Duty Paid means for both parties.

DDPDelivered Duty Paid

DDP (Delivered Duty Paid) is the Incoterm with maximum seller responsibility. The seller delivers the goods to the named place in the buyer's country, cleared for import, with all costs and duties paid. The buyer simply receives the goods — making it the buyer-friendliest term.

Where risk transfers

Risk passes only when the goods are delivered, ready for unloading, at the named destination in the buyer's country.

Responsibilities

Who pays for what

Seller is responsible for

Packaging and export customs clearance
Main carriage (freight) and insurance
Import customs clearance, duty and taxes
Delivery to the named destination

Buyer is responsible for

Unloading at the final destination (unless agreed otherwise)

When to use it

When DDP makes sense

DDP suits buyers who want a fully delivered, all-inclusive price with no logistics burden. It places maximum responsibility on the seller, who must be able to handle import clearance and duty in the buyer's country — so it is best when the seller has strong destination capability.

FAQ

DDP — common questions

What does DDP mean?

DDP (Delivered Duty Paid) means the seller delivers the goods to the buyer's named destination with everything paid — freight, insurance, import clearance, and duty. The buyer only needs to unload.

Who pays import duty under DDP?

The seller pays the import duty and taxes under DDP. This is the key feature that distinguishes it from DAP (Delivered At Place), where the buyer pays import duty.

When is DDP a good choice?

DDP works well when the buyer wants a hassle-free, all-inclusive landed price and the seller has the capability to clear customs and pay duty in the destination country. Otherwise it can expose the seller to unfamiliar import rules.

Other Incoterms