DDP, or Delivered Duty Paid, is an Incoterms 2020 rule under which the seller delivers goods at the named destination, cleared for import and ready for unloading. The seller carries the transport risk to that point and pays the applicable export, transit and import clearance costs, including duties and taxes.
The contract should identify the named destination and, where possible, the exact delivery point. A city, port or warehouse complex may contain several possible handover points. That ambiguity can change the final-mile charge, unloading plan and evidence used to show that delivery occurred.
What DDP assigns to each party
DDP responsibilities at the named destination
| Issue | DDP position | Record to keep |
|---|---|---|
| Delivery | The seller places the goods at the buyer's disposal on the arriving means of transport, ready for unloading. | Named destination, precise point, agreed date and delivery evidence. |
| Import clearance | The seller completes the required import formalities and pays applicable duties and taxes. | Importer-of-record arrangement, declarations, permits and duty or tax receipts. |
| Unloading | The buyer generally unloads the goods unless the carriage contract assigns that cost to the seller. | Written unloading arrangement and any destination handling charge. |
| Risk | The seller bears the risk until delivery at the agreed destination point. | Carrier event, proof of arrival and time-stamped handover record. |
DDP compared with DAP and EXW
DDP places the maximum delivery obligation on the seller among the eleven Incoterms 2020 rules. DAP also brings the goods to the named destination ready for unloading, while the buyer handles import clearance and applicable import duties and taxes. Under EXW, the buyer takes on most transport obligations from the seller's named premises or other agreed place.
A DDP price can be easier for a buyer to budget because it includes more of the route and import cost. The seller needs enough information and local capability to price those obligations. Currency changes, customs valuation disputes or an unexpected tax treatment can erode the seller's margin.
When DDP can cause problems
The seller may be unable to register as the importer of record, obtain an import licence or recover local taxes in the destination country. Confirm those points before the purchase order is issued. If the seller cannot complete import clearance, DAP may better match the actual operating arrangement.
The International Chamber of Commerce defines DDP delivery as goods placed at the buyer's disposal, cleared for import, on the arriving means of transport and ready for unloading at the named destination. Review the official ICC DDP guidance with the signed sale contract and destination-country advice.
How DDP affects landed cost and payment
DDP assigns delivery tasks, costs and risk. It does not set the invoice due date, transfer title to the goods or confirm that a bank payment has settled. Finance should reconcile the supplier invoice, purchase order, customs records and delivery evidence, then check whether any destination charge sits outside the quoted DDP price.
For comparison, landed cost captures the full cost of bringing the goods to the required location. A DDP quote may cover most of that amount, but buyer-side unloading, storage, inspection or local handling can still fall outside it.
Where Quotable Payments may fit
For an eligible cross-border supplier payment, Quotable Payments can show the applicable currency pair, quoted rate, fees and estimated Recipient amount before submission. Keep that payment record with the DDP purchase order, invoice and shipment reference so the transfer can be matched to the underlying trade.
