DDP (Delivered Duty Paid)
Definition
DDP is an Incoterm under which the seller is responsible for delivering goods to the buyer's named location with all transport, export and import clearance, duties, and taxes paid. It places the maximum obligation on the seller.
In Practice
Under DDP the buyer's job is essentially to unload the truck. The seller manages every leg: origin transport, export formalities, main carriage, import customs clearance, duty and tax payment, and final delivery. Risk stays with the seller until goods arrive at the agreed destination.
Planners like DDP for its simplicity: one landed price, one accountable party, no customs surprises. It is common in e-commerce cross-border sales, where sellers quote a duty-inclusive price so customers face no charges on delivery. The catch is that sellers must be able to act as importer of record in the destination country, which is not always legally straightforward, and the buyer loses all control over routing and timing.
For example, a machinery vendor selling DDP to a plant in Germany prices the equipment to include ocean freight, EU duty, and delivery to the loading dock.
Related Calculators
Related Terms
Incoterms are standardized international trade terms published by the International Chamber of Commerce that define where responsibility, cost, and risk transfer from seller to buyer in a shipment. Common examples include EXW, FOB, CIF, and DDP.
EXW (Ex Works)EXW is an Incoterm under which the seller simply makes goods available at its own premises, and the buyer is responsible for all transport, export and import clearance, and risk from that point onward. It places the minimum obligation on the seller.
Customs ClearanceCustoms clearance is the process of getting goods approved by government authorities to enter or leave a country, including filing declarations, paying duties and taxes, and satisfying any inspections. Goods cannot be delivered until clearance is complete.
Duty and TariffDuties and tariffs are taxes governments levy on imported goods, usually calculated as a percentage of the goods' declared value based on their classification code and country of origin. They are a direct component of landed cost.