Watch: DDP Incoterms Explained
DDP means Delivered Duty Paid. Under DDP, the seller arranges transportation, completes export and import customs clearance, and pays applicable import duties and taxes.
The seller bears the risk until the goods reach the precise named destination, ready for unloading. The buyer normally handles unloading.
Video Transcript
“What does DDP mean in international shipping?
This 30-second guide explains Delivered Duty Paid under Incoterms® 2020, including the seller’s transportation, customs and tax obligations and the point where cargo risk transfers to the buyer.
Under DDP, the seller arranges transportation, completes export and import clearance, and pays applicable import duties and taxes.
The seller bears the risk until the goods reach the exact named destination, ready for unloading. The buyer normally handles unloading.
DDP places the maximum obligation on the seller and can be used with any transport mode.
Before selecting DDP, confirm that the seller can legally complete import formalities in the destination country and always specify the precise delivery point.”
Learn More About DDP
This video provides a brief introduction. Read the complete DDP Incoterm guide for detailed information about transportation, customs clearance, duties, taxes, unloading and risk transfer.
You can also explore all Incoterms® to compare DDP with DAP and other international trade rules.
Before agreeing to DDP, confirm that the seller can legally act as the importer or otherwise complete import formalities in the destination country.
Incoterms® is a registered trademark of the International Chamber of Commerce.
