Incoterms® 2020 · D: arrival

DDP Delivered Duty Paid

Maximum obligation for the seller: delivered to the named destination, cleared for import, duties and taxes paid.

Delivery point: At the named place of destination, cleared for import, ready for unloading
Risk passes: At the named destination, before unloading
Transport mode: Any mode, including multimodal
Export clearance: Seller
Import clearance: Seller
Insurance: Not required of either party

Responsibility matrix

Costs and risk, stage by stage

DDP puts the maximum obligation on the seller. The seller delivers the goods to the named destination, clears them for import and pays all duties and taxes, including import VAT unless the contract excludes it. The buyer only unloads.

Seller pays
Buyer pays
Depends on the contract of carriage or the named place
Risk passes to the buyer

01 Loading at seller's premises Seller pays
02 Pre-carriage to export terminal Seller pays
03 Export clearance Seller pays
04 Origin terminal and loading on board Seller pays
05 Main carriage Seller pays
06 Destination terminal charges Seller pays
07 Import clearance, duties and taxes Seller pays
08 Carriage to named destination Seller pays
09 Unloading at destination Buyer pays

Who does what

The seller must

Carry the goods to the named place of destination
Clear the goods for export, transit and import
Pay import duties, taxes and fees, including VAT unless excluded
Bear all risks until the goods are delivered, ready for unloading
Provide the document the buyer needs to take delivery

The buyer must

Unload the goods at the named place
Assist the seller with information for import clearance
Bear the risk from delivery
Take delivery when notified

When to use it

The seller has an import entity, or a reliable importer of record, in your country
Small parcels and e-commerce shipments through couriers that offer DDP

Be careful when

The seller cannot legally import into your country
You could recover import VAT yourself, but the seller cannot: the VAT becomes a cost
You need control of customs valuation and classification

Tip for buying from Vietnam

Most Vietnamese manufacturers cannot act as importer in Europe or the USA. DDP offers then rely on a forwarder as importer of record; check who is liable to customs before you agree.

How to write it

DDP Buyer's warehouse, 300 Example Road, Melbourne VIC, Australia, Incoterms® 2020

Compare with

This guide summarises the Incoterms® 2020 rules in plain language for planning. It is not the official text. Incoterms® and the Incoterms® 2020 logo are trademarks of the International Chamber of Commerce. For the full rules, see ICC publication No. 723E.

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