DDP at a glance
Under DDP, the seller delivers goods placed at the buyer’s disposal, cleared for import, on the arriving means of transport ready for unloading at the named place.
Shipment
- Named location
- Named place of destination
- Delivery point
- When import-cleared goods are ready for unloading at the named place
- Risk transfer
- When import-cleared goods are placed at the buyer’s disposal ready for unloading
Responsibilities
- Main carriage
- Seller arranges and pays
- Export clearance
- Seller
- Import clearance
- Seller
- Insurance
- DDP does not require either party to contract for cargo insurance.
Contract
- Common comparison
- Compare with DAPDAP leaves import clearance and duties with the buyer.
Illustrative notation: DDP buyer facility, Toronto, ON, Incoterms® 2020. Customize and copy below ->
Responsibility journey
- Delivery point
- When import-cleared goods are ready for unloading at the named place
- Risk transfer
- When import-cleared goods are placed at the buyer’s disposal ready for unloading
Seller / exporter
- Cost
- Seller
Origin pickup
- Cost
- Seller
Export clearance
- Cost
- Seller
- Export
- Seller
Origin terminal
- Cost
- Seller
Carrier handoff
- Cost
- Seller
Main carriage
- Cost
- Seller
Destination terminal
- Cost
- Seller
Import clearance
- Cost
- Seller
- Import
- Seller
Final delivery
- Cost
- Buyer
- Handoff
- Delivery + risk transfer
Buyer / importer
- Cost
- Buyer
Who pays what under DDP?
DDP places maximum obligation on the seller, including import clearance and duties, while unloading usually remains for the buyer.
Seller does
- Arrange carriage to the named place
- Complete export and import clearance
- Pay duties and taxes as required for import clearance under the rule
Buyer does
- Unload at the named place
- Take delivery when goods are ready for unloading
Not determined by the DDP rule alone
- Seller unloading obligation
- Seller insurance obligation
When to use DDP
When DDP fits
- Sellers with strong destination customs capability who can deliver duty-paid
When to use DDP with caution
- Markets where the seller cannot act as importer of record
- Unclear VAT/duty recovery arrangements
DDP shipment example
A U.S. seller delivers goods to a named Toronto facility, having completed Canadian import clearance and duty payment. The buyer unloads. Risk transfers when the import-cleared goods are ready for unloading at that facility.
Common mistakes
- Promising DDP without importer-of-record capability
- Confusing DDP with DAP, which leaves import clearance to the buyer
How do you write DDP in a contract?
Include the acronym, the exact named location, and the edition.
Contract notation builder
Build an illustrative line with the acronym, named place or port, and Incoterms® 2020. Parties must agree the exact location; this does not create a contract.
DDP buyer facility, Toronto, ON, Incoterms® 2020Edition is fixed to Incoterms® 2020. Catalog example: DDP buyer facility, Toronto, ON, Incoterms® 2020
Does DDP include insurance?
DDP does not require either party to contract for cargo insurance.
DDP compared with related terms
Use these comparisons when the shipment mode, handoff point, or insurance need does not match DDP.
DDP vs. DAP
DAP leaves import clearance and duties with the buyer.
DAP leaves import clearance and duties with the buyer.
Open DAP details ->DDP vs. DPU
DPU requires unloading but not import clearance by the seller.
DPU requires unloading but not import clearance by the seller.
Open DPU details ->
Frequently asked questions
Who pays import duties under DDP?
Under DDP Incoterms® 2020, the seller is responsible for import clearance and for paying duties and taxes required to bring the goods into the destination country, subject to the parties’ contract details.
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Talk with a Crane trade or customs specialist about transport mode, handoff points, documentation, and clearance responsibilities. This guidance is educational and is not legal advice; the parties remain responsible for selecting contractual terms.
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Last reviewed July 30, 2026. Edition reference: Incoterms® 2020 (not a new calendar-year edition).