DDP — Delivered Duty Paid (Incoterms 2020)
DDP — Delivered Duty Paid (Incoterms® 2020). Risk transfers when goods are placed at the buyer's disposal ready for unloading at the named place of destination.. Freight included. Insurance NOT included.Generate compliant DDP documents in 60 seconds. Free up to 3/month.
infoDDP at a Glance
Responsibilities
- Risk Transfer
- When goods are placed at the buyer's disposal ready for unloading at the named place of destination.
- Cost Responsibility
- Seller bears ALL costs including freight, import clearance, duties, taxes, and delivery to destination.
- Transport Mode
- Any mode (road, rail, air, sea)
- Freight Included
- Yes — seller arranges & pays main carriage
- Insurance Included
- No — buyer arranges if desired
- Category
- Arrival (Destination) (D)
When to Use DDP
- When seller has strong import capabilities in buyer's country
- For small shipments where import logistics is burdensome for buyer
- When seller wants maximum control over entire process
When NOT to Use DDP
- When seller cannot handle import procedures in buyer country
- For high-volume B2B where buyer has established import infrastructure
- When buyer wants duty advantages or preferences
articleDDP Explained — Practical Guide
What DDP Means in Plain Language
DDP (Delivered Duty Paid (Incoterms® 2020)) is an Incoterms® 2020 term in Category D — arrival (destination). Under DDP, the seller when goods are placed at the buyer's disposal ready for unloading at the named place of destination.and pays for main carriage to the named destination.
Step-by-Step: Who Does What
- Seller: Makes goods available at the named place.
- Export clearance: Seller arranges & pays for export clearance.
- Main carriage: Seller contracts & pays carrier to named destination.
- Risk transfers: When goods are placed at the buyer's disposal ready for unloading at the named place of destination.. After this point, loss/damage is buyer's risk.
- Insurance: Buyer arranges own insurance if desired.
- Import clearance: Buyer arranges & pays for import clearance, duties, taxes at destination.
- Final delivery: Seller unloads at destination.
Common DDP Mistakes to Avoid
- Using DDP for sea shipments — mode mismatch invalidates the term.
- Not naming the precise place/port — "DDP China" is invalid; use "DDP Shanghai" or "DDP Guangzhou".
- Assuming insurance is included when it's not — only CIP and CIF include seller-procured insurance.
- Confusing risk transfer with cost transfer — they happen at different points in C-terms.
- Missing "Incoterms® 2020" in contract — without edition, old 2010 rules may apply.
local_shippingCarrier Implementation Notes for DDP
local_shippingFedEx
- • Terms of Sale field: DDP + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
inventory_2UPS
- • Terms of Sale field: DDP + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
deployed_codeDHL
- • Terms of Sale field: DDP + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
downloadFree: Incoterms® 2020 Cheat Sheet (PDF)
One-page reference: all 11 terms, risk transfer points, cost matrix, when to use each. Perfect for your desk or forwarding team.
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