DDP – Delivered Duty Paid
Incoterms® 2020 rule: transfer of risk, cost sharing and customs responsibilities.
The DDP rule in brief
DDP (Delivered Duty Paid) is a rule in Incoterms® 2020 that can be used for any mode of transport: "Delivered duty paid". It sets, in the sales contract, how delivery of the goods and costs and risks are shared between seller and buyer.
When does risk transfer?
At the destination, on the vehicle ready for unloading
Export clearance
The seller
Import clearance
The seller
Seller's obligations
Delivers the goods at destination; bears all costs and risks including import clearance and duties.
Buyer's obligations
Only takes over unloading and subsequent steps once the goods are delivered.
When is it used?
Offers the buyer the simplest process; preferred when the seller can manage customs and duties in the destination country.
This page is for general information; for the full scope of rights and obligations, see the ICC's official Incoterms® 2020 text and your contract terms.
Frequently asked questions
What is DDP?
DDP (Delivered Duty Paid) is a rule in Incoterms® 2020 that can be used for any mode of transport: "Delivered duty paid". It sets, in the sales contract, how delivery of the goods and costs and risks are shared between seller and buyer.
What is the difference between DDP and DAP?
DDP: Delivers the goods at destination; bears all costs and risks including import clearance and duties. DAP: Delivers the goods at the named place of destination, ready for unloading on the arriving vehicle; bears all costs and risks up to that point.