DDP (Delivered Duty Paid)
Incoterm imposing maximum obligations on the seller, who delivers the goods cleared for import and available at the named destination, with duties and taxes paid.
Definition and Principle
DDP (Delivered Duty Paid) is the Incoterm that imposes the maximum obligations on the seller. It is the exact opposite of EXW. The seller bears all costs and risks of bringing the goods to the named place of destination, including import clearance and payment of duties and taxes (customs duties, import VAT).
Seller's Obligations
- Arrange and pay for complete transport
- Clear the goods for export and import
- Pay all customs duties, taxes and clearance charges on importation
- Bear all risks to the place of destination
- Place the goods at disposal, not unloaded, from the arriving transport
Buyer's Obligations
- Unload the goods (unless otherwise agreed)
- Provide the seller with information needed for import clearance
Transfer of Risks
Risk passes from seller to buyer when the goods are placed at the buyer's disposal at the named destination, on the arriving means of transport, ready for unloading.
Key Considerations
DDP requires the seller to perform import customs formalities in the destination country, which is not always possible (some countries require the importer to be a resident). The seller bears the risk of duty rate changes between contract conclusion and actual importation. If the seller cannot handle import clearance, DAP is preferable.