Incoterms Rules
DDP — Delivered Duty Paid
DDP (Delivered Duty Paid) represents the maximum obligation for the seller. The seller bears all costs and risks until the goods arrive at the named place in the buyer's country, ready for unloading, including transportation, export and import customs clearance, and payment of duties and taxes. The seller has no obligation to insure the cargo for the buyer, although it bears the risk of loss until delivery and usually insures in its own interest. The buyer receives the goods without being involved in logistics.
Who does what
| Transport | Any mode |
|---|---|
| Export clearance | Seller |
| Import clearance | Seller |
| Main carriage paid by | Seller |
| Insurance | Not required |
| Risk passes to the buyer | When the goods arrive at the named place, ready for unloading |
When to use it
Maximum service to the buyer: the seller delivers cleared for import with duties paid. Used when the buyer wants a single delivered price.
What to watch
The seller must be able to clear import in the buyer's country, which is hard for a foreign seller; if it cannot, use DAP. The seller has no obligation to insure for the buyer, but it bears the risk until delivery.