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DDP Delivered Duty Paid.

Seller carries the goods to the buyer and also clears them for import and pays duties and taxes. Maximum obligation on the seller.

Where risk passes

DDP named place of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded
Risk passesAt the named destination, ready for unloading, cleared for import
Transport modeAny mode of transport
Main carriage booked bySeller
Cargo insuranceNot required; seller carries the risk and usually insures
Export clearanceSeller
Import clearance and dutiesSeller
Seller pays12 of 13 cost steps

Who pays what under DDP

CostPaid by
Loading at originSeller
Export customs declarationSeller
Carriage to port of exportSeller
Unloading of truck in port of exportSeller
Loading on vessel/airplane in port of exportSeller
Carriage (sea/air) to port of importSeller
InsuranceSeller
Unloading in port of importSeller
Loading on truck in port of importSeller
Carriage to place of destinationSeller
Import customs clearanceSeller
Import duties and taxesSeller
Unloading at destinationBuyer

Sources: ICC, Incoterms® 2020; cost split as given inWikipedia, Incoterms (section "Allocations of costs"). Duties, fit and pitfalls below are Navo's own summary, not ICC text. Incoterms® is a trademark of the ICC.

When DDP fits

Sellers with an import presence or fiscal representative in the buyer's country; e-commerce sales to consumers.

What to watch

  • The seller must clear import and pay duties and import VAT in the buyer's country, which may need local registration.
  • Recovering import VAT can be hard or impossible for a foreign seller.
  • Unloading at destination is on the buyer.
  • Shipping under DDP? Compare freight rates and check sailings.