Dictionary

Delivered duty paid (DDP)

“A shipping term in which the seller delivers goods to the buyer's named place, cleared for import with duties paid, carrying almost all costs and risks. DDP puts more on the seller than any other Incoterms rule.”

Why delivered duty paid (DDP) matters to a first-time founder

DDP places the broadest Incoterms obligation on the seller. A founder quoting it must price freight, import clearance, duties, taxes and destination risk correctly. In some countries, a foreign seller cannot act as importer of record, so an apparently convenient customer promise may be legally or operationally impossible.

Examples of delivered duty paid (DDP)

A UK seller quotes DDP Paris at £12,000 for equipment. It arranges transport, bears risk until the named Paris address and handles French import clearance and applicable charges. The buyer receives the goods ready for unloading; unloading is normally the buyer’s task unless the contract says otherwise.

Common misunderstanding

DDP does not mean every possible charge is automatically included or that the seller unloads. The named place and Incoterms edition matter, while VAT treatment and importer rules depend on the jurisdictions involved. It is also different from paying only carriage to the destination.

When to use it

Use DDP only after confirming the seller can lawfully complete import formalities and recover or price local taxes. Name the precise destination and Incoterms edition in the contract. If the buyer should manage import clearance, another rule such as DAP may fit better.