DDPDelivered Duty Paid

DDP (Delivered Duty Paid) means the seller delivers the goods to the named destination cleared for import, paying transport, import duties and taxes such as VAT; risk passes when the goods are ready for unloading there, and the buyer unloads. It is the most the seller can take on, and works for any mode.

Summarised from the Incoterms® 2020 rules. Not legal advice.Updated 6 October 2026

Where DDP hands over

The orange marker is where risk passes to the buyer. Blue bars are the seller's, yellow the buyer's.

DDP at a glance

Transport: Any modeIncluding containers and multimodal
Risk passes: Arrived at destination
Main carriage: Seller paysand arranges the contract
Insurance: No obligationthe party at risk usually insures
Delivery point: At the named place of destination, cleared for import, on the arriving means of transport ready for unloading.

DDP responsibilities
Job	Who
Export clearance	Seller
Loading at origin	Seller
Main carriage	Seller
Insurance	No obligation
Unloading at destination	Buyer
Import clearance and duties	Seller, incl. duties and taxes

When to use DDP

Use DDP when

E-commerce and retail deliveries where the seller imports
The seller is registered for VAT or GST in the buyer's country
The buyer wants a landed, all-in price

Avoid DDP when

The seller cannot act as importer of record
Import VAT cannot be recovered
Duties are uncertain or the HS code is disputed

Common DDP mistakes

Seller pays import duties and taxes

The seller pays duties and import VAT or GST in the buyer's country, and may need to register there. If it cannot recover that VAT, it is a straight cost.

Importer of record

Some countries do not let a foreign seller act as importer. Check this before agreeing DDP; DAP is often the safer choice.

Unloading

Unloading is still the buyer's job under DDP.

DDP beside its neighbours

DAP leaves import clearance, duties and taxes with the buyer. Read about DAP.

DPUDelivered at Place UnloadedRisk passes: unloaded at destination DDPDelivered Duty PaidRisk passes: arrived at destination

All eleven rules

E rulesDeparture

EXWEx WorksAny mode of transport

F rulesMain carriage unpaid

FCAFree CarrierAny mode of transport FASFree Alongside ShipSea and inland waterway FOBFree On BoardSea and inland waterway

C rulesMain carriage paid

CFRCost and FreightSea and inland waterway CIFCost, Insurance and FreightSea and inland waterway CPTCarriage Paid ToAny mode of transport CIPCarriage and Insurance Paid ToAny mode of transport

D rulesArrival

DAPDelivered at PlaceAny mode of transport DPUDelivered at Place UnloadedAny mode of transport DDPDelivered Duty PaidAny mode of transport

Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). CartonMath is not affiliated with or endorsed by the ICC. This is a plain-language summary; the full rules are published by the ICC and the contract wording governs.

Common questions

What does DDP mean?

When does risk pass under DDP?

At the named place of destination, cleared for import, on the arriving means of transport ready for unloading.

Who pays the main freight under DDP?

The seller arranges and pays the main carriage.

Who pays import duties under DDP?

The seller pays import duties and taxes under DDP.

Can DDP be used for container shipments?

Yes. DDP works for any mode of transport, including containers and multimodal shipments.