DDP: Delivered Duty Paid (Incoterms® 2020)

DDP puts the most work on the seller: it delivers to the named destination, cleared for import, with duties and taxes paid. The buyer only unloads.

Quick facts

TransportAny mode

Delivery and risk pass to the buyerAt the named destination, ready for unloading

Main freight paid bySeller

InsuranceNot required

Export clearanceSeller

Import clearance and dutiesSeller

Unloading at destinationBuyer

How to write it

DDP + the full destination address + Incoterms 2020, for example: DDP Buyer's store, 45 Main Street, Toronto, Canada Incoterms 2020. To exclude import VAT, say so, for example "DDP ..., VAT unpaid".

What the seller does

Clears the goods for export and for import.
Pays import duties and taxes, including VAT or GST unless the contract excludes them.
Contracts and pays transport to the named destination and carries the risk until arrival.
Delivers the goods ready for unloading.

What the buyer does

Unloads the goods at the destination.
Helps the seller, at the seller's cost, with information needed for import clearance.
Takes the risk once the goods are at its disposal, ready for unloading.
Checks that the price really includes all duties and taxes it expected.

When to use it

DDP suits sellers who know the import country well and can act as importer of record there, such as e-commerce sellers using a local agent. For most small exporters, DAP is safer.

Common mistakes

Agreeing to DDP without being able to act as importer of record or register for tax in the buyer's country.
Forgetting import VAT or GST, which can cost more than the duty.
Not checking duty rates and fees before quoting a delivered price.

DDP vs DAP

The difference is import clearance and the duties and taxes that come with it. Under DDP they are the seller's; under DAP they are the buyer's.

A plain-language summary of Incoterms® 2020 for everyday use. The full rules are published by the International Chamber of Commerce (ICC), and your contract wording decides. Incoterms® is a registered trademark of the ICC.

All 11 Incoterms 2020 rules

Common questions

Does DDP include import VAT?

Yes, unless the contract excludes it. Under DDP the seller pays import duties and taxes, including VAT or GST. The parties can agree otherwise in writing, for example "DDP, VAT unpaid".

Why do many sellers avoid DDP?

Because the seller has to act as importer in the buyer's country, which may require local registration, and it carries the cost of duties, taxes and any clearance delays.