Incoterms® 2020Modes: Any
DDP - Delivered Duty Paid
DDP (Delivered Duty Paid) is one of the 11 rules published by the ICC in Incoterms® 2020. Risk passes cleared for import, duties paid, at named destination. Insurance is not an obligation under DDP - the buyer decides.
Avoid for LC
Risk transfer point
Cleared for import, duties paid, at named destination
Who does what under DDP
| Obligation | Party |
|---|---|
| Export Packaging | Seller |
| Inland Transport (Origin) | Seller |
| Export Clearance | Seller |
| Loading on Vessel | Seller |
| Main Carriage (Freight) | Seller |
| Insurance | Seller (recommended) |
| Destination Charges | Seller |
| Import Clearance | Seller |
| Import Duty | Seller |
Watch outs
- Maximum seller obligation. Seller must be legally registered to import in buyer's country.
- Seller bears full currency risk on import duty rates.
- Avoid unless seller has legal entity or licensed customs broker in destination.
Under a letter of credit
Almost never used with LC. Seller handles import in buyer's country - legal complexity.