DDP (Delivered Duty Paid)
An Incoterm where the seller delivers goods to the buyer's named place, cleared for import with duties and taxes paid, ready for unloading.
TL;DR: DDP means the seller handles everything up to the named destination, including export clearance, freight, import clearance, duties and taxes. Risk passes to the buyer when the goods arrive, ready for unloading.
DDP places the most responsibility on the seller. It can be used for any mode of transport. The buyer only needs to unload the goods at the named place, unless the contract says otherwise. It is the opposite end of the scale from EXW.
The main challenge is import clearance. The seller, or an agent working for it, must act as the importer of record or work with one in the buyer’s country. Some countries make this difficult for a foreign company. Import VAT or sales tax is also part of DDP by default, and the seller may not be able to reclaim it. The parties can exclude VAT in the contract if they agree.
For buyers, DDP is simple and gives a clear landed cost. The tradeoff is less visibility. The price includes duty and freight margins you cannot see, and you rely on the seller’s choice of broker to declare the correct HS code and value.
As an example, a buyer in the United States may still face questions from customs about a shipment even if the seller paid the duties. Ask who the importer of record is and request copies of the import entry papers. Compare with DAP, DPU and Import Duty and Taxes.