What Is DDP?

DDP is written with a named place of destination, such as DDP London warehouse. The ICC lists it among the eleven Incoterms 2020 rules. It places the greatest duty on the seller: the seller arranges carriage, clears the goods for import and pays the import duties and taxes of the destination country. The buyer only has to unload. The rule fits any mode of transport. Because the seller handles import formalities abroad, the seller needs a clear understanding of local import rules, or a local agent, and should price the duties into the quote.

For example, a Jaipur home decor exporter quotes USD 12,000 DDP Manchester. The price covers carriage, import clearance and UK duties and taxes. The exporter's agent clears the goods and the buyer receives them at its warehouse ready to unload.

• Pricing: A DDP price is the highest of the common terms because it includes carriage, import duties and taxes. A mistake in estimating duty comes out of the seller's margin.
• Import compliance: The seller must meet import formalities abroad. This may need a local agent or registration, so check the destination country's rules before quoting.
• Bank compliance: Your AD bank may ask for the invoice and shipping documents when it matches receipts to an export under the FEMA export regulations. The invoice value should be read against the DDP term, since part of the price covers foreign duties.
• GST and income tax: DDP is a delivery convention. GST and income tax treatment depends on the law, so ask your adviser rather than rely on the term alone.

The seller arranges carriage to the destination, clears the goods for import, pays the duties and taxes, and makes the goods available for unloading.

1. The parties agree DDP and name the destination place in the contract, with the edition, for example Incoterms 2020.
2. The seller packs the goods and clears them for export from India.
3. The seller arranges carriage to the destination country.
4. The seller or its agent clears the goods for import and pays duties and taxes.
5. The seller delivers the goods at the named place, ready for unloading.
6. The risk passes to the buyer at that point.

You build the delivered price from your goods price, carriage, insurance and the destination country's import duties and taxes, and write it with DDP and the named place. Get a customs estimate before quoting.

1. Work out your goods price including packing.
2. Get a quote for carriage to the destination place.
3. Ask a customs broker at the destination to estimate import duties and taxes.
4. Add the figures and your margin to reach one price.
5. Write it as DDP plus the named place, with the edition, for example Incoterms 2020.
6. Show the same term on the proforma and commercial invoice.

DDP covers carriage all the way to the destination and import duties. CIF covers sea freight and insurance only up to the destination port, and the buyer handles import clearance.

• Always best for the buyer: DDP puts cost and risk on the seller. A wrong duty estimate reduces the seller's margin.
• Services: Incoterms cover the sale of goods. A services invoice does not carry DDP.
• Payment: DDP sets delivery, cost and risk. Payment timing is separate, see export payment terms.
• Unloading: Under DDP the goods are delivered ready for unloading. Unloading is the buyer's task.

• FOB: Seller loads the goods on board the vessel.
• CIF: Seller pays freight and minimum insurance to the destination port.
• EXW: Seller makes goods available at its own premises.
• Commercial invoice: The seller's bill for the goods, showing the trade term.
• Incoterms: The ICC set of eleven trade terms.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. ICC, Incoterms rules, Eleven trade terms; Incoterms 2020 in force 1 January 2020 (checked 9 Oct 2026)
2. RBI, FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB, Export monitoring and AD bank matching of receipts (checked 9 Oct 2026)