The following article describes everything you need to know about the Incoterm “Delivered Duty Paid” (DDP). In case of any questions or unclarities, do not hesitate to contact us.
Delivery Duty Paid (DDP) is an Incoterm in which the seller is responsible for transporting the goods until they have reached a destination nominated by both parties.
It is part of the D Group Incoterms® 2020 rules. When any of D Group rules are followed, the delivery place and the destination point are the same location. This means, from a seller's point of view, their obligation to fulfil the goods delivery is only applicable when they arrive at the agreed destination point.
Along the transport line, this means that the risk is transferred from the seller to the buyer very late in the process, essentially at the place of their arrival at the pre-determined destination point.
As part of the seller's responsibility, they are required to bring the goods to the buyer at the point where they agreed in the buyer's country, or at any rate in a country chosen.
In essence, the D Group rules enforce the maximum level of involvement of the seller, referring to risk, costs and obligations.
DDP Incoterms® 2020 is a rule which can be used for all types of transport, including the combination of transport modes.
As part of the seller's responsibility, they are required to do the following:
- Organise the transport mode
- Organise delivery of the goods to a specified place in the contract
- Organise and complete payment of import customs clearance (in the case of international trade) and taxes such as customs duty, VAT and excise duty where applicable.
The risk of damage to the goods passes to the buyer from the seller, only when the goods arrive at the buyers' location, ready for the point of unloading.
When composing a sales contract for DDP, the contract should cover:
- Value of the goods
- Delivery cost of goods
- Customs Clearance of the goods (including import and export fees and taxes where required)
- Delivery of the goods to the final destination
- Paying for import duty, taxes and customs clearance
- unload the shipment at their requested destination point.
ALS is an innovative, neutral, and globally active customs broker. We operate as a unified entity, where every member of our team, from your dedicated contacts to our board of directors, is committed to meeting your specified needs.
We are here to guide you through the process of international trade. Whether it’s speaking to one of our sales team, or requiring further guidance with our consultants, we offer everything to help facilitate your complete end-to-end customs solution. By law, we are not able to provide you with advice on which Incoterm you should use. However, we can provide you with information which you can use to make your decision.
What are the various Incoterms? Learn more!
Incoterms – short for international commcerial terms – are being used to clarify rules and terms of the international customs trade.
Learn more in our other articles about incoterms:
- Ex Works (EXW)
- Free Carrier (FCA)
- Carriage Paid To (CPT)
- Carriage and Insurance Paid To (CIP)
- Delivered at Place (DAP)
- Delivered at Place Unloaded (DPU)
- Delivery at Frontier (DAF)
- Delivery ex-Ship (DEX)
- Delivered Duty Paid (DDP)
- Deliver Duty Unpaid (DDU)
- Free Alongside Ship (FAS)
- Free on Board (FOB)
- Cost and Freight (CFR)
- Insurance, and Freight (CIF)