DDP Incoterms: The Practical Guide You Didn’t Know You Needed

By TY Yap / 04/07/2025 / 7 minutes of reading

Sellers manage all tasks under DDP, including unloading at ports. The DDP (Delivered Duty Paid) rule under the International Commercial Terms (Incoterms) operates much like a full-service catered event—sellers handle nearly everything until the final stage when the goods arrive at the buyer’s location.

Understanding DDP Incoterms

Under DDP, sellers manage all delivery processes, including shipment transit. The seller’s responsibility covers packaging, documentation, transport, and customs until goods are delivered to the buyer’s location.

Key responsibilities and financial obligations

DDP places maximum responsibility on sellers. They must cover shipping costs, handle import/export clearance, taxes, duties, and often unloading. Buyers’ main responsibility is unloading at the final destination.

Impact of DDP on shipping and choosing DDP as a buyer

DDP simplifies the buying process but requires sellers to have strong logistics expertise. Buyers benefit from cost predictability and minimal risk, though seller pricing may include higher margins to cover risks.

Simplifying buyer’s path

DDP enables buyers to focus on core operations without worrying about international logistics. It is ideal for first-time importers, though buyers must select experienced sellers to avoid delays or compliance issues.

TY Yap

TY Yap is a writer with expertise in supply chain management and ecommerce. He leads a management consultancy and enjoys working with entrepreneurs and start-ups.