"Delivered Duty Paid" (DDP) is an Incoterm in which the seller assumes maximum responsibility for delivering goods to the named destination and arranging transport, all associated costs, and managing the import customs clearance, including payment of taxes and duties. This term places the highest responsibility on the seller out of all the Incoterms.

DDP Definition and Scope

Under DDP, the seller is responsible for delivering the goods to a place agreed upon with the buyer, ready for unloading at the destination. The seller covers all costs and risks of bringing the goods to the destination, including paying duties and taxes. This term applies to any mode of transportation and is particularly suitable for buyers who prefer a straightforward procurement process without involving customs and import complexities.

Seller’s Obligations

  • Arrange and pay for all transportation costs to the destination, including export and import duties, taxes, and other charges.
  • Assume all risks until the goods are delivered and ready for unloading at the named destination.
  • Provide the necessary documents so the buyer can receive the goods without additional burdens.

Buyer’s Obligations

  • Unload the goods at the destination.
  • Typically, the buyer has very few obligations under DDP, primarily around receiving the goods once they arrive.

Risk and Cost Transfer Points

Risk transfers from the seller to the buyer when the goods are available for unloading at the named destination. This includes the seller arranging and paying for transport to the specified location and handling all customs procedures.

Benefits and Considerations

  • Benefits: This term significantly reduces the logistical and financial burden on the buyer, making it ideal for those unfamiliar with complex international shipping and customs procedures.
  • Considerations: The seller must have a good understanding of the import regulations of the buyer’s country, as they are responsible for clearing the goods through customs and handling all related payments. It can be risky and costly for the seller, especially if not well-acquainted with the local regulations.

Common Scenarios

  • Useful when the buyer wants to avoid customs and import processes.
  • Ideal for transactions where the seller can manage logistics efficiently and handle customs clearance in the buyer’s country.