DDPIncoterms 2020

Delivered Duty Paid

Seller delivers the goods to the buyer's door with duties and taxes paid.

DDP is the maximum-obligation term for the seller. The seller pays all costs, clears the goods for export and import, and pays all duties and taxes at destination.

DDP is attractive to buyers because the price on the invoice is the total landed cost — no surprises at customs. But it puts import VAT/GST liability on the seller, which can create complications (the seller may need to register for VAT in the destination country).

For cross-border e-commerce, DDP is increasingly expected. Many marketplaces require landed-cost pricing.

Who is responsible for what

Cost
Seller pays everything, including destination duties and taxes.
Risk
Transfers at the buyer's door.
Insurance
Not obligatory — usually arranged by the seller.
Duties
Seller pays export AND import duties.

When to use

Cross-border e-commerce, small-parcel B2B where the buyer wants a single landed price.

Transport modes

air, sea, road, courier

FAQ

Does DDP include VAT?
Yes. DDP means the seller pays all import duties AND VAT/GST at destination. The seller may need to register for VAT in the destination country.

Create a DDP invoice

Start the wizard with DDP pre-selected. Takes about a minute.

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