DDP — Delivered Duty Paid

Mode of transport

Any mode

Definition

The seller delivers when the goods are placed at the disposal of the buyer, cleared for import, on the arriving means of transport ready for unloading at the named destination. DDP is the maximum obligation for the seller.

Delivery point

At the named destination, import-cleared, ready for unloading.

Risk transfer

At the named destination after import clearance.

Seller costs

• All carriage, export and transit costs
• Import duties, VAT (unless expressly excluded) and clearance fees
• Any import licences

Buyer costs

• Unloading at destination
• Costs after the named place

Insurance

No obligation; the seller bears the entire transit risk.

Export formalities

Seller's responsibility.

Import formalities

Seller's responsibility — requires the seller to be able to act as importer of record in the destination country.

Documents

• Commercial invoice, packing list
• Import customs declaration and duty receipts
• Delivery order / proof of delivery

Best use cases

Sample shipments, spare parts and e-commerce deliveries where the buyer wants a landed, all-inclusive price.

Common mistakes

• Selling DDP into a country where a foreign seller cannot be importer of record
• Not clarifying whether VAT is included
• Underestimating destination duties and taxes in the price

Practical example

DDP Doha, Incoterms® 2020, VAT excluded.