DDP, or Delivered Duty Paid, is an Incoterm where the seller handles most of the operation for shipping goods to an agreed destination port. The seller arranges transport, pays the freight, gets export clearance, and pays tax and duties. The buyer is also responsible for bearing the risk until the goods reach the destination port.
The DDP shipping method can be used for road, air, sea, and multimodal transport. It is very convenient for the buyer as major responsibilities fall on the seller to handle the entire shipment. Buyers help to unload the goods safely.
How It Works:
- The seller manages the entire shipping process.
- Pays for transportation, insurance (if applicable), and duties.
- Handles customs clearance at both export and import stages.
- Delivers goods to the buyer’s location.
- The buyer only receives the goods.
Benefits:
- Maximum convenience for buyers
- Seller takes full responsibility
- Simplifies international purchasing
- Eliminates unexpected costs for buyers
Example:
Using DDP, the seller delivers the goods to the buyer in Delhi and handles major tasks including customs clearance and paying taxes and duties.