DDP
Category: trade
Delivered Duty Paid — seller bears all costs including duties and taxes to deliver to buyer.
DDP (Delivered Duty Paid) is an Incoterm where the seller bears all costs and risks of delivering goods to the buyer's specified destination, including import duties, taxes, and customs clearance. DDP provides the most predictable cost for buyers since the seller handles everything. For e-commerce, DDP shipping means the customer receives goods with no additional customs charges.
Examples
- • An Amazon seller offering DDP shipping to EU consumers ensures the buyer pays no additional import duties or VAT at delivery.
- • DDP requires the seller to have import licenses and customs knowledge in the destination country, making it more complex but buyer-friendly.
- • Many cross-border e-commerce sellers use DDP logistics services where the freight forwarder handles customs clearance and duty payment on behalf of the seller.