DDP

Category: Incoterms

Definition (plain English)

Delivered Duty Paid means the seller takes responsibility for delivery to the named place including import clearance, duty, and taxes unless local law or contract wording limits what is possible.

Why it matters commercially

DDP can look simple for the buyer, but it may hide duty/tax markups, importer-of-record problems, VAT recovery limits, and unclear post-clearance liability.

Example

A seller offered DDP retail warehouse, but finance rejected the quote until the buyer confirmed who would be importer of record and whether import VAT could be recovered.

Common mistake

Accepting DDP pricing without validating tax treatment, importer authority, local registration rules, included destination charges, and document access.

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