GlossaryEN1 min readUpdated: Jun 26, 2026

Delivered Duty Paid (DDP)

Delivered Duty Paid (DDP) places the maximum burden on the seller: all costs to the named destination are for the seller's account, including export formalities, international freight, insurance, import clearance, import duties, excise taxes, and VAT where applicable.

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Last updated: 26 June 2026Published: 27 January 2026

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

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Definition & Explanation

Delivered Duty Paid (DDP) places the maximum burden on the seller: all costs to the named destination are for the seller's account, including export formalities, international freight, insurance, import clearance, import duties, excise taxes, and VAT where applicable. Risk remains with the seller until the goods are made available at the destination, ready for unloading. Because DDP requires the seller to act as importer of record – or to appoint a local customs agent – it is not suitable in every trade lane; sellers must verify they can legally clear goods in the buyer's country. Buyers benefit from a simple, all-inclusive price, but should be aware that duty and tax costs are bundled into the purchase price rather than itemised. DDP is the mirror image of EXW: one puts everything on the buyer, the other everything on the seller.

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