Under DDP the seller delivers the goods to the named destination cleared for import, with duties and taxes paid. It is the most the seller can take on under any Incoterms rule.
DDP Delivered Duty Paid
Any mode of transport
| Step | DDP |
|---|---|
| Export packing and marking | Seller |
| Loading at the seller's premises | Seller |
| Export customs clearance | Seller |
| Transport to the port or terminal | Seller |
| Terminal charges and loading at origin | Seller |
| Main carriage (ocean or air freight) | Seller |
| Cargo insurance | Not required by the rule |
| Unloading at destination terminal | Seller |
| Transport to the named place | SellerRisk passes to the buyer here |
| Unloading at the named place | Buyer |
| Import clearance, duties and taxes | Seller |
DDP (Delivered Duty Paid) means the seller delivers the goods to the named place of destination, cleared for import, on the arriving vehicle, ready for unloading. The seller pays all transport, export and import clearance, import duties and taxes such as VAT or GST, and bears the risk to that point. The buyer only unloads. DDP works for any mode of transport.
| Seller | Buyer |
|---|---|
| Arranges and pays all transport to the named place | Unloads the goods at the named place |
| Clears export and import and pays duties, taxes and fees | Helps the seller with import information when asked |
| Bears the risk until the goods arrive, ready for unloading | Takes delivery when notified |
A US hardware vendor sells servers to a company in Australia "DDP Customer data centre, 40 Clarence St, Sydney, Incoterms® 2020". The vendor's freight forwarder flies the servers to Sydney, files the import declaration, pays the Australian duty and GST, and delivers to the data centre's loading dock. The customer's staff unload them. The price the customer pays already covers everything.
DDP is popular with buyers because the quoted price is the full delivered price, but it puts the seller in the importer's position in the buyer's country:
If any of these is a problem, DAP keeps door delivery while leaving import to the buyer. Some contracts use "DDP, VAT unpaid" to leave the import VAT with the buyer; if you do this, spell it out clearly in the contract.
Couriers often offer "duties and taxes paid" services, which work like DDP for parcels: the sender pays the duties so the recipient is not asked for money at the door. Check that the courier's service and your contract say the same thing.
Whatever the rule, the seller provides a commercial invoice that names the Incoterm and place, and usually a packing list. For quotes before the order, use a proforma invoice with the same rule written on it.
DDP means Delivered Duty Paid. The seller delivers the goods to the named destination cleared for import, paying transport, duties and taxes. The buyer only unloads.
The seller pays import duties, taxes and clearance fees under DDP, unless the contract excludes some of them, such as import VAT.
The seller, or an agent acting for the seller, normally acts as the importer under DDP. That can require a local registration and tax number in the buyer's country.
Under DDP the seller clears import and pays duties and taxes. Under DAP the buyer does. Both deliver to the named place, ready for unloading.
The buyer. The seller's obligation ends when the goods arrive on the arriving vehicle, ready for unloading.