Incoterms 2020
DDP, Delivered Duty Paid
The seller does everything, including import clearance and paying the duty. It is the buyer’s dream and frequently the seller’s expensive mistake.
- Group
- D
- Mode
- Any mode of transport
DDP is the mirror image of EXW. The seller handles the entire journey, clears the goods for import in the buyer’s country, pays the duty and any taxes, and delivers to the door. For the buyer it is the simplest possible arrangement: one price, goods appear.
For the seller it is often a trap. Clearing goods for import in a country where you have no establishment can be legally difficult or impossible, and import VAT paid by a foreign company is frequently not recoverable, which turns it into pure cost. Before agreeing DDP, check whether you can actually act as importer and whether the VAT comes back. Often DAP is the better answer.
The seller is responsible for
- Clear the goods for export and arrange all transport
- Bear all risk to the named destination
- Clear the goods for import in the buyer’s country
- Pay import duty, import VAT and any other taxes
- Deliver ready for unloading at the destination
The buyer is responsible for
- Unload the goods
- Provide any assistance the seller needs for import clearance
- Take delivery at the named place
Risk transfers
When the goods arrive at the named destination ready for unloading.
Costs transfer
At the same point, with all duties and taxes already paid by the seller.
Best used for
Sellers with an established presence or a fiscal representative in the destination country.
Watch out for
Import VAT paid by a non-established seller is often unrecoverable. Price it in, or use DAP instead.
Related services
Tell us what you need to move.
Send the supplier city or port of loading, the volume and weight, and the date the goods are ready. We will come back with a landed cost and a realistic transit time, usually within one working day.