DDP Incoterm (Delivered Duty Paid) — Risk & Cost Split
DDP — Delivered Duty Paid (Incoterms 2020) What DDP means. DDP stands for Delivered Duty Paid. Under ICC's Incoterms 2020 the seller delivers when the goods are placed at the buyer's disposal, cleared for import, on the arriving means of transport, ready for unloading, at the named place of destination. The seller carries the risk of the whole journey, clears the goods for export and for import, and pays import duty and taxes. ICC's note to the rule says DDP puts the maximum level of obligation on the seller of all eleven rules. It can be used for any mode of transport. Who does what under DDP. Why ICC tells sellers to be careful. Import clearance has to be done inside the buyer's country. ICC's introduction to the rules says this may be physically or legally difficult for a foreign seller, and advises such a seller to consider DAP or DPU, where delivery is still at destination but the buyer clears import (paragraph 22). The notes to DDP add that tax paid on import may not be recoverable by the seller. Before quoting DDP, an exporter should know who will act as importer in the destination country and what duty and import taxes apply there. The seller does not have to unload: the bu…
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