DDP

What is DDP?

DDP stands for Delivered Duty Paid. It is an Incoterm where the seller takes responsibility for delivering goods to the named destination and paying import duties and taxes.

DDP places the highest level of responsibility on the seller.

Why does DDP matter?

DDP matters because it can be convenient for buyers, but risky and complex for sellers. The seller may need to manage export clearance, international transport, import clearance, duties, taxes and delivery in the buyer’s country.

This can be difficult if the seller is not registered or authorised to handle import obligations in that jurisdiction.

What responsibilities usually sit with the seller?

Under DDP, the seller usually manages:

• export clearance

• freight and transport

• insurance where required

• import clearance

• duties and taxes

• delivery to the named destination

• risk until delivery

Common mistakes

Common mistakes include:

• sellers agreeing DDP without understanding import obligations

• failing to calculate duties and taxes

• unclear VAT or tax treatment

• not checking whether the seller can act as importer of record

• failing to specify the delivery destination

How iTradeDigital helps

iTradeDigital helps buyers and sellers understand the full implications of DDP before agreeing the transaction. It helps connect trade terms, documentation, customs responsibilities and payment expectations in one shared digital workflow.

Related terms

• Incoterms®

• DAP

• EXW

• Import duty

• Customs declaration

• Payment terms

FAQs

Is DDP good for buyers?

It can be convenient for buyers because the seller takes on most responsibilities.

Is DDP risky for sellers?

Yes. Sellers need to understand import duties, taxes and local compliance obligations.

Is DDP the same as DAP?

No. Under DAP, the buyer usually handles import duties and taxes. Under DDP, the seller usually does.