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 places the maximum obligation on the seller of any Incoterm. The seller delivers to the named destination having paid every cost along the way, including import duty, import VAT or GST, and any clearance charges. It is attractive to buyers because the landed price is final and predictable, but it is demanding for sellers: many countries require the importer of record to be locally registered for tax, and a foreign seller may be unable to reclaim import VAT they have paid. Sellers who cannot register locally should quote DAP and let the buyer clear, or use DDP with an agreed exclusion for VAT.
Key points
- Maximum seller obligation; buyer receives a fully landed price
- Seller pays import duty and import VAT/GST
- Often impractical where the seller cannot act as importer of record
- DAP is the same rule minus import clearance and duties