Glossary Discription

Delivered Duty Paid (DDP) is an Incoterm (International Commercial Term) in which the seller assumes maximum responsibility and risk for delivering goods to a specified destination in the buyer’s country. Under DDP terms, the seller bears all costs and risks associated with transporting goods to the named place of destination, including export clearance, international shipping, import customs clearance, duties, taxes, and final delivery. This arrangement represents the highest level of obligation for the seller among all Incoterms, effectively making the transaction as simple as a domestic purchase for the buyer. DDP is particularly prevalent in e-commerce and business-to-consumer transactions where cost transparency and convenience are paramount, as the buyer receives goods with all import formalities completed and all associated costs already paid.

Key Characteristics

• Maximum Seller Responsibility
• Complete Cost Transparency for Buyer
• Risk Transfer at Destination
• Complex Customs and Tax Obligations
• Distinction from Similar Incoterms