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
-
DAP
Delivered at Place
The seller delivers to the named destination, ready for unloading. The buyer unloads and clears import.
- Loading at seller's premises: Seller pays
- Pre-carriage to export terminal: Seller pays
- Export clearance: Seller pays
- Origin terminal and loading on board: Seller pays
- Main carriage: Seller pays
- Destination terminal charges: Seller pays
- Import clearance, duties and taxes: Buyer pays
- Carriage to named destination: Seller pays
- Unloading at destination: Buyer pays
-
DPU
Delivered at Place Unloaded
The only rule where the seller unloads at destination. Replaced DAT in 2020.
- Loading at seller's premises: Seller pays
- Pre-carriage to export terminal: Seller pays
- Export clearance: Seller pays
- Origin terminal and loading on board: Seller pays
- Main carriage: Seller pays
- Destination terminal charges: Seller pays
- Import clearance, duties and taxes: Buyer pays
- Carriage to named destination: Seller pays
- Unloading at destination: Seller pays
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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