Incoterms and shipping
DDP (Delivered Duty Paid)
Definition
The seller delivers to the named destination, cleared for import with duties and taxes paid.
DDP at a glance
- Transport
- Any mode
- Risk passes
- At the named place of destination, cleared for import, ready for unloading
- Insurance
- No obligation, but the seller carries the risk until delivery
DDP puts the most obligation on the seller. The seller carries all costs and risk to the named destination and is responsible for import clearance, duties and import taxes.
For chemicals, DDP can be risky for the seller. The importer of record may carry regulatory duties in the destination country, such as REACH registration in the EU, TSCA certification in the US or licences in India. Check that you can legally act as importer before agreeing to DDP.
Related terms
- Incoterms 2020The ICC's eleven standard trade terms that set who pays for and bears the risk of each step of delivery.
- FCA (Free Carrier)The seller clears the goods for export and hands them to the buyer's carrier at a named place.
- FOB (Free on Board)The seller delivers the goods on board the buyer's vessel at the named port of shipment, cleared for export.
- CIF (Cost, Insurance and Freight)Like CFR, with the seller also buying minimum cargo insurance for the voyage.
- DAP (Delivered at Place)The seller bears costs and risk until the goods arrive at the named destination, ready for unloading.