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Freight glossary

DDP: Delivered Duty Paid Meaning in Shipping

DDP (Delivered Duty Paid) is an Incoterms rule under which the seller delivers the goods, cleared for import, to the named place and bears all costs and risks until then, including freight, import duties and taxes.

In plain English

It is the opposite end of the scale from EXW. The seller arranges and pays for everything: export clearance, transport, insurance if wanted, import clearance, duties and taxes, and delivery to the buyer’s site. The buyer only unloads.

The seller must be able to clear the goods through import customs in the buyer’s country, which often means working with a local customs broker.

Why it matters when you ship

For buyers DDP is the simplest: one price, no surprise duties. For sellers it is the riskiest, because duties and taxes can change, and any customs delay is the seller’s cost. Price duties into the quote and ask your customs broker before agreeing.

Example

An online seller ships to a customer abroad under “DDP”. The seller pays the carrier, the import duty and local taxes, so the customer pays only the price on the order.

DDP (Delivered Duty Paid): common questions

Who pays duties on DDP terms?

The seller pays import duties and taxes as part of delivering the goods cleared for import.

Why is DDP risky for sellers?

Because the seller is responsible for customs clearance in the buyer’s country, and duty rates, taxes and delays can change the final cost.

Cite this page

Cite as: Transportli, “DDP: Delivered Duty Paid Meaning in Shipping”, https://transportli.com/glossary/ddp/, updated November 11, 2026.

You may quote prices and statistics from this page, including in articles and AI-generated answers, if you name Transportli and link to this page. Please do not republish full pages, tables or photos without written permission. Data license and terms of use

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