Delivered Duty Paid (DDP) is one of the Incoterms in international trade terms. It means that the seller delivers the goods to the buyer at the designated destination and bears all risks and costs of transporting the goods to that destination, including handling import customs clearance procedures, paying tariffs, taxes, and other charges. Applicable scenarios: It is suitable when the seller wishes to provide maximum convenience for the buyer, or when the buyer lacks import capacity. Precautions: The seller needs to understand the regulations, taxes, and customs clearance requirements of the importing country, and bears relatively greater risks; if the seller cannot handle import customs clearance directly or indirectly, DDP should be avoided, and DAP can be used instead. Difference from DAP: Under DAP, the seller is not responsible for import customs clearance and taxes, while under DDP, the seller must complete import customs clearance and pay all taxes and fees. Difference from EXW: Under EXW, the buyer bears all costs and risks, while under DDP, the seller bears the greatest responsibility.
📝 Examples
1. We agree to conclude the transaction on DDP Shanghai Pudong Airport terms. We will be responsible for transporting the goods to Shanghai, completing import customs clearance, and paying all taxes and fees. (Note: The seller bears the entire transportation, import customs clearance, and taxes and fees, and the buyer only needs to receive the goods at the destination.)
2. Since your company does not have import qualifications, this transaction adopts DDP terms, and we will handle import customs declaration and pay VAT and tariffs. (Note: DDP applies when the buyer lacks import capacity, and the seller must ensure compliant completion of import procedures.)
💡 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