Delivered Duty Paid
Delivered Duty Paid (DDP) is an Incoterms® 2020 rule under which the seller assumes all costs and risks to deliver goods to a named destination, including export clearance, international transport, import clearance, duties, and taxes, until the goods are made available for unloading by the buyer. In practical terms, the buyer receives the shipment with landed cost already absorbed by the seller.
On a shop floor, DDP is selected for critical inbound flows that must arrive as fully cleared, ready-to-receive receipts so production can begin without customs delays or unexpected cash calls. Receiving teams treat the delivery like a domestic inbound once it reaches the named destination, because customs brokerage, duty payment, and cross-border transport were handled upstream by the supplier. In raw-material tracking, this matters most for tight line-side deadlines: blocked customs or unpaid duties are removed from the goods-receipt equation, and procurement can book the full landed cost into inventory without waiting for later tariff adjustments. Operationally, the receiving organization still must confirm the named destination, verify that the supplier can act as importer of record, and ensure dock space, labor, and equipment are ready for unloading. If any of these assumptions fail, even a DDP shipment can stall at receiving and create an inbound shortfall.
- Customs release failure at the dock: The truck arrives, but import clearance was not completed correctly, so the shipment cannot be unloaded into inventory and production waits while the warehouse records an inbound shortfall.
- Unexpected landed-cost variance: Duty rates, VAT/GST, brokerage fees, or commodity classification errors make the supplier pass through higher charges, distorting material cost accounting even though the buyer expected a fixed DDP price.
- Misaligned handoff point in receiving: The team treats DDP as fully delivered to the dock, but the contract only requires availability for unloading, so missing labor, equipment, or appointment capacity creates bottlenecks after customs is already handled.
Who is the importer of record under DDP?
DDP places import clearance and duty/tax responsibility on the seller, but the exact importer-of-record arrangement depends on local law and the transaction structure; the key point is that the seller is contractually responsible for import formalities under the Incoterm.
Does DDP transfer risk before unloading?
No. Risk and cost remain with the seller until the goods are made available for unloading at the named destination.
How does DDP differ from DAP?
Under DDP, the seller also handles import duties and import clearance; under DAP, the buyer typically handles import clearance and related import charges.