DDP and EXW sit at opposite ends of the Incoterms spectrum — DDP places maximum responsibility on the seller, EXW places maximum responsibility on the buyer.
| DDP — Delivered Duty Paid | EXW — Ex Works | |
|---|---|---|
| Transport mode | Any mode | Any mode |
| Risk transfers | At named destination, ready for unloading | At seller's premises, before loading |
Under DDP, the seller handles everything: export clearance, freight, import clearance, duties and delivery to the buyer's door — the buyer simply receives the goods. Under EXW, the seller's job ends the moment goods are made available at their own premises; the buyer arranges and pays for collection, export clearance, freight, import clearance and delivery. Between these two extremes sit the other nine Incoterms.
You're selling direct to consumers who expect a single all-in price with no surprise customs charges, or you're an experienced exporter comfortable acting as importer of record in the destination country.
You're a smaller supplier without export logistics infrastructure, or your buyer has strong freight-forwarding relationships and wants full control over the shipping process from your loading dock onward.
DDP is far riskier for the seller — they bear all transit risk and all customs/duty risk for the entire journey. EXW is the safest Incoterm for sellers, since their responsibility ends the moment goods leave their premises.
It's possible but demanding — DDP requires the ability to act as importer of record in the destination country, which some countries restrict to local entities. Many smaller sellers use a customs broker to handle this, or default to DAP instead where the buyer handles import duties.
A buyer with an established freight-forwarding network may get better shipping rates than the seller could offer, and EXW gives them full control over carrier choice, timing and consolidation with other shipments.
Compare DHL, UPS, FedEx, DPD and GLS rates in seconds — whichever Incoterm you're using.
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