Where delivery happens
When the goods, cleared for import, are at the named destination on the arriving vehicle, ready for unloading.
The seller
- Export and import clearance
- All freight and transit risk to the named place
- Import duty and import taxes (e.g. GST/VAT) unless the contract says otherwise
The buyer
- Unloading
- Giving the seller information needed for import clearance
When risk passes
Passes at the named destination, before unloading.
When to use DDP
The seller wants to give the buyer a single landed, all-in price and can legally act as importer in the buyer's country.
Watch out
The seller must be able to act as importer of record in the destination country and may not be able to claim back import GST/VAT there. Check this with a customs broker before quoting DDP.
Example
DDP Auckland: an Australian supplier quotes one price to the door in New Zealand, clears NZ customs and pays NZ duty and GST itself.
How it appears on the invoice
Write the three-letter code, the named place and the rules version, for example DDP Auckland (Incoterms® 2020). The full name is not needed on the document. In Vendara Trade Documents you pick DDP – Delivered Duty Paid from the list and the invoice prints just DDP with your named place.
Frequently asked questions
What does DDP mean?
DDP stands for Delivered Duty Paid (Incoterms® 2020). The seller does everything: freight, export and import clearance, and pays import duty and taxes. The buyer only unloads.
Where does risk pass under DDP?
Passes at the named destination, before unloading.
Who pays import duty and GST under DDP?
The seller pays import duty and import taxes such as GST, unless the contract says otherwise.
When should I use DDP?
The seller wants to give the buyer a single landed, all-in price and can legally act as importer in the buyer's country.
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