GLOSSARY
DDP (Delivered Duty Paid)
Incoterm placing maximum obligation on the seller, who delivers goods cleared for import at the buyer's named destination.
Delivered Duty Paid is the Incoterms 2020 rule imposing maximum responsibility on the seller, who must deliver goods cleared for import and ready for unloading at the buyer's named place of destination.
Why it matters
Under DDP, the seller bears all transport costs, insurance, export and import duties, VAT, and risk until the goods arrive at the destination. This simplifies procurement for buyers but creates significant exposure for sellers who must navigate foreign customs regimes.
In practice, DDP is problematic in countries where the seller cannot act as importer of record. Before quoting DDP, confirm you can legally clear goods in the destination country or consider DAP with the buyer handling import formalities. The ICC Incoterms 2020 rules at iccwbo.org/resources-for-business/incoterms-rules detail these obligations.