What is the DDP Incoterm?
DDP (Delivered Duty Paid) is an Incoterm whereby the seller is responsible for delivering goods to the agreed destination, including all costs and customs formalities.
What is the DDP Incoterm?
Among the Incoterms the DDP (Delivered Duty Paid) Incoterm is often used in international transactions, especially in situations where the seller assumes maximum responsibility.
The DDP Incoterm is a commonly used trade term indicating that the seller is responsible for delivering the goods to the buyer at a specific location, after they have been cleared and all necessary duties and taxes have been paid. The DDP provision is one of the most comprehensive Incoterms, as the seller is responsible for delivery of the goods and all associated costs, including customs clearance, taxes and duties.
What are the advantages and disadvantages of the DDP Incoterm?
The main advantage of using the DDP Incoterm is that it offers the buyer a hassle-free shipping experience, as he receives the goods at home without having to worry about the customs clearance process. However, a major disadvantage of using DDP Incoterm is that it can be expensive for the seller, as he has to bear all shipping and customs costs, which can affect his profit margins. Moreover, in some countries, it can be challenging to clear the goods, which can lead to delays and additional costs for the seller. Therefore, it is crucial to carefully consider the pros and cons of using DDP Incoterm before choosing it for your international trade transactions.
Looking for support to make the right decision or want more information?
If so, please contact us. One of our specialists will be happy to help you further.
Frequently asked questions about the DDP Incoterm
Which Incoterm is recommended if DDP is not practical?
If DDP is problematic, the Incoterm "DAP" (Delivered at Place) are a better option. With DAP, the seller is responsible for delivering the goods to an agreed upon place in the destination country, but the costs and risks after arrival at that place are for the buyer.
What are the buyer's responsibilities under DDP?
The buyer must inform the seller of the place of delivery and other relevant information. Once the goods are delivered, risk is transferred to the buyer. The buyer must receive the goods, inspect them and make any further customs formalities fulfillment.
Other knowledge base articles
October 28, 2025
Customs clearance
Good customs clearance prevents delays, extra costs and discussions with inspection. The process begins even before departure with classification, origin ...
October 28, 2025
Customs declaration
A customs declaration is the formal notification to customs indicating what goods you are importing, exporting or in transit ...
October 28, 2025
Customs
What exactly does customs mean and what does customs do on a day-to-day basis? In short, customs ensures that ...