DDP — Delivered Duty Paid — is the Incoterms rule under which the seller delivers to the buyer’s door with all import duties and formalities already discharged. It is the most convenient term for the buyer and the riskiest for the seller, because it requires the seller to act as importer in a country where it is almost never established.
What DDP actually includes
- Carriage to the agreed place.
- Export and import customs clearance.
- Duty, import VAT and any other charges due on import.
- Unless otherwise agreed, unloading remains the buyer’s responsibility.
Why DDP stalls
- The seller cannot lodge the declaration. Almost everywhere the importer must be registered in the destination country. In the European Union an EORI number is required, and an indirect customs representative for anyone not established there.
- Import VAT becomes a cost. The foreign seller advances it but often cannot deduct it, having no VAT registration at destination. A DDP price quoted without allowing for this loses exactly the VAT rate in margin.
- Classification arrives late. Tariff code and origin get settled at the last moment, on an invoice written to sell rather than to clear.
DDP or DAP
| DDP | DAP | |
|---|---|---|
| Carriage | Seller | Seller |
| Import clearance | Seller | Buyer |
| Duty and VAT | Seller | Buyer |
| Delivery | To the door | To the door |
| Workable everywhere | No | Yes |
When DDP is not workable, the answer is not to force it but to move to DAP and agree separately who funds the charges. The buyer still receives the goods at the door; only who appears as importer changes.
Frequently asked questions
What does DDP mean?
Delivered Duty Paid: the seller delivers the goods at the agreed place with all import formalities and charges discharged. It places the maximum obligation on the seller.
Is unloading included in DDP?
No. Unless otherwise agreed, unloading at the delivery point remains with the buyer. If it must be included, use DPU or specify it in the contract.
Can a foreign seller import into the European Union?
Not directly if it is not established in the EU: an indirect customs representative is required to declare in its own name and assume the customs debt.
Can the seller recover import VAT?
Only where it is entitled to do so at destination, which normally requires a VAT registration. Otherwise VAT is a net cost that must be built into the price.
Is DDP allowed in every country?
No. Some countries do not permit a non-resident to act as importer. Check the specific market before committing.
Who is liable if the goods are held at customs?
Under DDP the risk of import clearance sits with the seller, including the consequences of incorrect classification.
What do you need for a DDP quotation?
Tariff code, origin, value, current Incoterms rule, delivery address and volume or weight. With those the quotation includes duty and VAT definitively.
DDP or DAP — which is better?
DDP if the seller can clear at destination and recover VAT; DAP in every other case. Under DAP the buyer still receives the goods at the door.
If your DDP always stalls at the same point, send us a real file. We look at where it stops — representation, VAT, classification — and tell you whether to keep DDP or switch to DAP. See our DDP import solutions and the Incoterms 2020 guide.