DDP (Delivered Duty Paid) is one of the Incoterms (International Commercial Terms). It means that the seller delivers the goods to the buyer at the named place of destination and bears all costs and risks involved in bringing the goods to that place, including handling import customs clearance procedures, paying duties, taxes, and other charges. Usage scenarios: The seller wishes to provide the most convenient 'door-to-door' service for the customer, especially suitable when the seller has an agent in the importing country or is familiar with the import process, or when the buyer is a small or medium-sized customer lacking import capabilities. Precautions: The seller bears the maximum responsibility and risk, including potential obstacles, additional costs, and delays in import customs clearance; if the seller cannot directly or indirectly handle import customs clearance, DDP should be avoided and DAP may be used instead. DDP is easily confused with DAP (Delivered at Place), under which the seller is not responsible for import customs clearance and duty payment; whereas under DDP, the seller must complete import customs clearance and pay all duties and taxes. In addition, under DDP, risk transfers upon delivery at the destination, but the seller must ensure the goods are duty-paid and available for the buyer's disposal.
📝 Examples
1. We signed a contract with a European customer using DDP terms, under which we are responsible for transporting the goods to the customer's warehouse and paying all import duties and VAT. (Note: The seller bears the entire transport, import customs clearance, and taxes; the buyer only needs to receive the goods at the warehouse.)
2. Since the buyer does not have import qualifications, we agreed to quote on DDP basis, but we need to confirm in advance whether we can complete import customs clearance in our own name. (Note: The seller needs to assess its own customs clearance capability in the importing country to avoid breach of contract due to inability to clear customs.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner