DDP (Delivered Duty Paid) is the Incoterm with the maximum seller obligation: the seller delivers the goods cleared for import, with all duties and taxes paid, at the named destination.
DDP (Delivered Duty Paid) is the Incoterm that places the maximum obligation on the seller. Under DDP, the seller delivers the goods to the named destination, cleared for import, with all duties and taxes paid and ready for unloading. It is the mirror image of EXW, where the seller's obligation is at a minimum.
Under DDP, the seller is responsible for the entire journey: export clearance, main carriage, insurance if it chooses, delivery to the destination, and — crucially — import customs clearance and payment of all import duties and taxes. The buyer's only real responsibility is to unload the goods and receive them.
The seller handles everything up to and including import clearance and duties, delivering the goods ready for unloading at the destination. The buyer simply takes delivery and unloads. This makes DDP the most convenient term for buyers and the most demanding for sellers.
Risk passes to the buyer when the goods are placed at the buyer's disposal at the named destination, cleared for import and ready for unloading — the latest possible transfer point of any Incoterm.
Because DDP makes the seller responsible for import clearance and duties in the buyer's country, the seller must fully understand the destination's import rules, customs duty, taxes and any registration requirements. If the seller cannot legally act as importer of record or reclaim local taxes, DDP can lead to unexpected costs and delays. In such cases, DAP — where the buyer handles import — is often safer.
DDP is popular for e-commerce, samples and situations where the buyer wants a fully landed, all-inclusive price with no surprises. It offers the buyer maximum convenience, provided the seller is confident managing the destination country's customs and tax obligations.
DDP is the Incoterm with the highest seller responsibility, delivering goods cleared for import with all duties paid. It gives buyers a fully landed price and maximum convenience, but requires the seller to master the destination country's import procedures. When the seller cannot manage import clearance and taxes, DAP is the more practical alternative. As always, name the destination precisely and state "Incoterms 2020".