What is DDP (Delivered Duty Paid)?
Delivered Duty Paid (DDP) is the Incoterms rule with the greatest seller obligation. The seller delivers the goods to the named place in the buyer's country, cleared for import, with all duties and taxes paid, and bears all risk until arrival.
At a glance
| Term | DDP |
|---|---|
| Definition | Delivered Duty Paid — seller bears all costs and risks until delivery to buyer's named place. |
| Category | Logistics & delivery |
| Related terms | Incoterms, EXW (Ex Works), FOB, CIF, B/L (Bill of Lading), Laycan, Demurrage |
What it is used for
DDP gives the buyer a genuine landed price with no logistics work. It is common for finished goods and smaller consignments, and rare for bulk commodities where buyers usually want control of freight.
Key points
- The seller pays carriage, export and import clearance, duties and taxes to the named destination.
- Risk stays with the seller until the goods are placed at the buyer's disposal, ready for unloading.
- Unloading at destination is the buyer's obligation unless the contract says otherwise.
- Works with any transport mode.
What to watch for
- The seller must be able to act as importer of record in the buyer's country. In many jurisdictions a foreign company cannot, which makes DDP impossible in practice.
- VAT treatment under DDP is complex and often unrecoverable for the seller — price it in.
- If import clearance is the obstacle, DAP puts delivery at the destination while leaving import formalities with the buyer.
Frequently asked questions
Who pays import duty under DDP?
The seller. That is the defining feature of the rule and the main reason sellers resist it.
What is the difference between DDP and DAP?
Under DAP the seller delivers to the destination but the buyer handles import clearance and duties. DDP moves both to the seller.
Is DDP used for bulk commodities?
Rarely. Bulk trades are usually FOB or CIF because buyers want to control chartering and because import formalities sit naturally with the local party.
Related terms
Lodfy verifies every company on the platform — registration, ownership and sanctions screening — before they can trade.