Incoterms® guide

DDP — Delivered Duty Paid

The seller delivers to the named destination, cleared for import with duties and taxes paid, ready for unloading. Maximum obligation for the seller.

Transport
Any mode
Main carriage
The seller books and pays all carriage, import clearance, duties and taxes.
Risk passes
When the goods arrive at the named destination, cleared for import and ready for unloading.
Insurance
Not required

Who pays and who carries the risk

Seller Buyer
  1. Export clearanceSeller
  2. Loading at sellerSeller
  3. Transport to terminalSeller
  4. Origin terminal & loadingSeller
  5. Main carriageSeller
  6. Destination terminal & unloadingSeller
  7. Import clearance & dutiesSeller
  8. Delivery to buyerSeller
  9. Risk passes to buyer
    Unloading at buyerBuyer

Seller

  • Clear the goods for export, transit and import
  • Pay import duties and taxes (including VAT, unless agreed otherwise)
  • Contract and pay carriage to the named destination
  • Bear all risk until arrival

Buyer

  • Unload the goods
  • Help the seller with information needed for import clearance

When to use it

When the buyer wants a landed price and the seller is able to act as importer in the buyer's country.

Watch out

The seller becomes the importer of record. In the EU a non-resident seller may need a VAT registration and often cannot recover import VAT. Check before quoting DDP — DAP is often the safer choice.

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Other Incoterms® rules

Incoterms® is a registered trademark of the International Chamber of Commerce. This guide is Cargo 4S's own summary for everyday use; for the complete rules see the official ICC Incoterms® 2020 publication.

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