DDP - Delivered Duty Paid

DDP (Delivered Duty Paid) is the Incoterms® clause with the maximum obligations for the seller and the counterpart to EXW. It applies to all modes of transport. The seller bears all costs and risks up to the named place in the buyer's country — including export formalities, main carriage, import clearance, duties, import VAT and any other import-related charges. Delivery takes place on the means of transport ready for unloading at the destination.

DDP is popular in textile B2B for smaller orders imported directly from the Far East because the buyer does not have to deal with foreign customs ("door delivery"). At the same time DDP carries risks for the seller: they must know the tax rates and clearance requirements of the target market, and in countries such as the USA, UK (post-Brexit) or Switzerland the import VAT can become administratively complex. In EU intra-community deliveries DDP is often the norm because duties do not apply and only VAT must be correctly settled. Caution: some firms colloquially use "DDP" for China imports without proper customs paperwork — this can amount to smuggling and is legally risky.