DDP, or Delivered Duty Paid, is an international trade term defined in the Incoterms rules published by the International Chamber of Commerce (ICC). DDP is a comprehensive Incoterm that places maximum responsibility on the seller. It outlines the responsibilities, costs, and risks between the seller and the buyer.

Delivery Point

In a DDP transaction, the seller is responsible for delivering the goods to the named destination (often a place, location, or buyer's premises) agreed upon by the buyer and seller. Importantly, the seller is also responsible for clearing the goods through import customs and paying all associated duties and taxes.

Seller's Responsibilities

Under DDP, the seller is responsible for:

• Packaging and preparing the goods for export.
• Transporting the goods to the named destination, which can be in the seller's own country or another country.
• Paying for the transportation costs to the named destination.
• Handling export and import customs formalities.
• Paying all import duties, taxes, and other charges.
• Providing the buyer with any necessary documents, like invoices, export licenses, import customs documentation, or other paperwork.
• Unloading the goods at the named destination.

Buyer's Responsibilities

• Receiving and taking possession of the goods at the named destination.
• Bearing any costs or risks associated with the goods after they have been delivered and unloaded at the named destination.
• Bearing any costs or risks incurred after the goods have been delivered and unloaded at the named destination.

Transfer of Risk

Risk is transferred from the seller to the buyer at the point when the goods are made available at the named destination. The seller is responsible for the goods until they are ready to be taken over by the buyer.

DDP is an Incoterm that places the highest level of responsibility on the seller, as they are not only responsible for transportation and delivery but also for handling all customs procedures and paying duties and taxes in the buyer's country. DDP is often used when the seller has a strong presence in the buyer's country or when the buyer prefers a turnkey solution. Clear specification of the named destination and a well-defined agreement between the parties are essential for a successful DDP transaction.