Incoterms 2020 · Maximum seller obligation
DDP — Delivered Duty Paid
The seller delivers to the named place with import cleared and duty paid; the seller is usually the importer of record.
Key facts
| Risk passes | When the goods are ready for unloading at the named place, import cleared |
|---|---|
| Export clearance | Seller |
| Import clearance and duty | Seller |
| Main carriage | Seller |
| Insurance | Neither party is obliged; seller bears risk and normally insures |
| Unloading | Buyer |
| Best for | Sellers with a local importer entity or a reliable import agent |
| Source | ICC Incoterms 2020, DDP |
DDP makes the seller the importer
To clear import and pay duty, the seller usually needs a local tax identity, a customs registration or an agent acting as importer of record. Without that, DDP is a promise the seller cannot keep. The buyer may also lose the ability to reclaim import VAT if the seller is the importer.
Product compliance stays with the party the law names, not with the Incoterm. A DDP term does not make the seller the manufacturer or the responsible person under GPSR, CE or FDA rules.
Price DDP from the duty backwards
Start with the duty and import tax, add destination handling and delivery, then add freight and origin costs. The landed-cost calculator is built for that order. Check the tariff code and the destination's de minimis or low-value rules before quoting; a DDP price built on the wrong rate is a loss on every unit.
If the buyer can clear import more cheaply, DAP plus a clear division of duties is often better than DDP. Choose the rule that matches who can legally and economically act at the border.
Frequently asked questions
Does DDP include VAT?
DDP includes import duties and taxes the seller is obliged to pay. Whether VAT is recoverable depends on the seller's registration and the destination rules.
Can a seller without a local entity use DDP?
Only with an importer-of-record arrangement or a customs agent. Otherwise use DAP and let the buyer clear import.
Ask a compliance question
Free first answer by email. Tell us the destination, the product and the channel — we will point you to the rule and the official source. No obligation, no sales sequence.