GlossaryCustoms and trade

DDP (Delivered Duty Paid)

An Incoterms rule where the seller delivers the goods to the buyer and pays all transport costs, import duties and taxes.

Delivered Duty Paid (DDP) is an Incoterms rule under which the seller carries the most responsibility. The seller arranges and pays for transport to the named destination, clears the goods for export and import, and pays any duties, taxes and customs fees owed in the destination country.

For ecommerce, DDP means the customer pays one price at checkout and receives the parcel with nothing more to pay at the door. That usually reduces refused deliveries and support tickets, but the seller has to estimate duties and taxes correctly in advance and absorb any difference.

Selling DDP often requires an importer of record or a carrier service that bills duties back to the shipper account. It is the opposite end of the scale from DAP, where the buyer pays the import charges.

Learn more in our Cross-border shipping articles.

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