Delivered Duty Paid (DDP)

Delivered Duty Paid (DDP) is an international trade term (Incoterm) published by the International Chamber of Commerce that represents the maximum obligation for the seller in a transaction — the seller is responsible for delivering the goods to the buyer's named destination, fully cleared for import, with all duties, taxes, and customs charges paid. Under DDP, the seller bears all costs and risks from the point of origin through to the final destination, including export and import customs clearance, all applicable duties, freight, insurance, and last-mile delivery. The buyer simply receives the goods at the agreed location without any additional cost or administrative burden. DDP is particularly common in e-commerce cross-border trade and business-to-consumer international deliveries where the buyer expects a single all-inclusive price. For Indian import-export businesses and equity investors analysing trade-exposed companies, understanding Incoterms including DDP is important — the Incoterm used in a contract determines which party bears transport and customs risk and cost, directly affecting landed cost calculations, gross margin, and pricing competitiveness. The opposite of DDP on the risk-transfer spectrum is EXW (Ex Works), where the buyer assumes all responsibility from the seller's premises.