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Glossary
Consignee
Glossary
Delivered Duty Paid
Definition
DDP (Delivered Duty Paid) is an Incoterm used in international trade agreements to define the comprehensive responsibilities of the seller in delivering goods. Under DDP terms, the seller is obligated to arrange transportation and cover all costs and risks associated with delivering the goods to a specified place, which can be the buyer's premises or another agreed-upon location. This responsibility includes handling customs clearance and paying all import duties, taxes, and other charges.
— sennder Team
FAQ
The seller under DDP terms bears all liability, risk, and expense, including shipping charges, export and import tariffs, insurance, and any other costs, up to the point where the buyer picks them up or assumes ownership at the destination.
The buyer's responsibilities are minimal under DDP terms. They are primarily responsible for unloading the goods once they are made available at the designated place.
DDP places the maximum responsibility on the seller, unlike other Incoterms such as EXW (Ex Works) or FCA (Free Carrier), which allocate more responsibilities to the buyer, like arranging transportation or handling customs clearance and import duties.
Example or usage in road freight logistics:
An Italian manufacturer selling furniture to a UK buyer under DDP terms would handle transportation, all costs and risks, customs clearance, and import duties. The seller's responsibilities end when the goods are available for unloading at the UK warehouse, where the buyer takes over for unloading.