Trade & Incoterms
DDP (Delivered Duty Paid)
An Incoterm where the seller delivers goods to the buyer at the named destination, cleared for import, with all duties and taxes paid. Maximum seller obligation; common when buyers want a door-to-door quoted price.
In depth
DDP is the opposite of EXW: the seller delivers to the buyer’s door (or agreed place) with import cleared and duties paid. It is attractive for e-commerce and buyers who want certainty, but sellers need strong import compliance knowledge and may be liable for unexpected duty reclassifications.
Key points
- Seller must be registered or use a broker in the destination country
- VAT/GST treatment varies: contract should state who acts as importer
- Maximum seller risk: price accordingly
- Not permitted in some jurisdictions for certain goods without local entity