GlossaryEN1 min readUpdated: Jun 26, 2026

Delivered Duty Paid (DDP)

Quick Answer

Last updated: 26 June 2026Published: 27 January 2026

Source: https://iccwbo.org/business-solutions/incoterms-rules/

Category

Incoterms 2020 Simulator: Who bears costs & risk?

Reading time

1 min

Words

113

Mentioned in

–

Definition & Explanation

Where most Incoterms split responsibilities between seller and buyer at some point in transit, Delivered Duty Paid (DDP) keeps every obligation with the seller right through to final delivery: export clearance, main carriage, import duties, import VAT, and all customs formalities at destination. The buyer simply receives the goods, cleared and ready, at the named place. DDP represents the seller's maximum commitment under the Incoterms rules. It is widely used in cross-border e-commerce and B2C shipments where buyers have neither the means nor the willingness to handle customs procedures. Sellers without an established legal presence or importer-of-record status in the destination country face potentially complex authorisation requirements and should approach DDP with care.

Next steps

Matching tools and partners

Calculate customs valueWork out import duties and customs valueOpen Compare IncotermsClarify duties, cost and riskOpen Calculate transit timeEstimate duration per transport modeOpen Find a matching partnerFreight forwarders and logistics partners worldwideOpen

Related Terms

You might also be interested in these terms

Carriage Paid To

Carriage Paid To (CPT) is an Incoterms trade term under which the seller contracts for carriage and pays the freight charges to th…

Learn more

Carriage and Insurance Paid to (CIP)

Exporters and freight forwarders turn to CIP (Carriage and Insurance Paid to) when they need to provide the buyer with both prepai…

Learn more

Delivered Duty Paid

Delivered Duty Paid (DDP) sits at the far end of the Incoterms spectrum: unlike EXW, where the buyer does almost everything, DDP p…

Learn more

Delivered Duty Paid (DDP)

By the time goods arrive under DDP terms, the seller has already handled everything: transport, import formalities, customs duties…

Learn more

Carriage Paid To (CPT)

Under Incoterms 2020, CPT (Carriage Paid To) applies when the seller agrees to pay freight charges to a named destination but limi…

Learn more

ICC Incoterms®

Incoterms® (International Commercial Terms), published by the International Chamber of Commerce and currently in their 2020 editio…

Learn more

⚖️ ICC Incoterms 2020

Incoterms 2020 Simulator: Who bears costs & risk?

Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.

Incoterms Simulator →

Logistics knowledge straight to your inbox

Free · No password · Never a paywall. Weekly top news and facts from logistics.

Delivered Duty Paid (DDP)

Next steps

Related Terms

Carriage Paid To

Carriage and Insurance Paid to (CIP)

Delivered Duty Paid

Delivered Duty Paid (DDP)

Carriage Paid To (CPT)

ICC Incoterms®

Incoterms 2020 Simulator: Who bears costs & risk?

Logistics knowledge straight to your inbox

Community Questions & Answers