INCOTERMS 2020

DDP

Delivered Duty Paid

CODEDDP

VERSIONIncoterms 2020

MODEAny mode

RISK TRANSFERS ATAt named destination, after unloading

Cost responsibility

Seller pays everything including import duty and VAT at destination

Seller obligations

S1Export clearance
S2Main carriage
S3Insurance (customary)
S4Import clearance
S5Import duty and VAT payment
S6Delivery to named place

Buyer obligations

B1Take delivery at named place
B2Pay agreed purchase price

When to use DDP

When seller has strong presence in buyer's country and can handle foreign customs efficiently. Common for B2C e-commerce where customer sees final price with no surprise import charges. Amazon and major e-commerce platforms effectively operate on DDP.

When NOT to use DDP

Seller unfamiliar with destination country customs procedures. High-tariff destinations where duty costs are unpredictable. Countries with complex import licensing requirements.

Common mistakes with DDP

!Seller agreeing DDP without a destination country customs broker or importer of record
!Confusing DDP with DAP — DAP does NOT include duty payment
!Not factoring destination VAT into pricing, leading to margin erosion

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