Maximum seller responsibility — seller pays everything including import duties. Buyer receives goods with no extra charges.
Delivered Duty Paid (DDP) is the Incoterm that places the most obligation on the seller — the opposite of EXW. The seller is responsible for delivering goods to the named destination in the buyer's country, paying all costs including export clearance, main freight, import customs clearance, import duties, and VAT at the destination. The buyer simply receives the goods. DDP requires the seller to be able to act as the importer of record in the destination country, which is not always legally possible without local registration. In e-commerce, DDP is increasingly common — couriers offer 'DDP' services where the seller pre-pays import VAT through the EU's IOSS scheme or similar mechanisms.
DDP is ideal for B2C e-commerce where customers expect a fully landed price with no surprise duty charges. It is also suitable for established B2B relationships where the seller is registered as an importer in the destination country, or when using a customs broker acting on the seller's behalf. DDP is common for courier shipments to the EU under the IOSS (Import One-Stop Shop) VAT scheme for orders under €150.
Do not use DDP if the seller is not legally permitted to act as importer of record in the destination country (many countries require local entities to import goods). DDP also transfers all import tax risk to the seller — any misclassification, undervaluation or duty surprises become the seller's financial problem. Avoid DDP for high-value goods with uncertain tariff classifications.
The seller is responsible for import customs clearance, including filing the customs declaration, paying import duties and VAT, and acting as (or appointing) the importer of record. The seller must either be registered as an importer in the destination country or appoint a customs broker who can clear goods on their behalf.
Not always. Some countries require the importer of record to be a locally registered entity. For example, Brazil requires a CNPJ (local tax ID) to import. In these cases, sellers shipping DDP must appoint a local customs broker or have a local subsidiary. This is a critical check before agreeing DDP terms for new destination countries.
For e-commerce shipments to the EU valued at €150 or less, sellers can register for the EU IOSS scheme and collect VAT at the point of sale. When declared with an IOSS number, the parcel clears customs VAT-free at the border and is delivered without additional charges — effectively DDP delivery for VAT purposes. Import duties on goods over €150 still need to be handled separately.
Under DAP, the seller delivers to the destination but the buyer pays import duties and handles customs clearance. Under DDP, the seller covers everything — the buyer has no customs obligations or extra charges. DDP gives buyers a predictable total landed cost; DAP leaves import costs uncertain until customs clearance.
Under standard DDP terms, the seller delivers goods ready for unloading but is not responsible for the unloading itself. The buyer handles unloading under DDP. If the seller is also to unload, this must be agreed separately in the contract or specified as 'DDP including unloading'.
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