Shipping Terms Glossary

Shipping Terms Glossary
Delivered Duty Paid (DDP)

Delivered Duty Paid (DDP)

As a buyer, if you’re looking for a ‘complete’ shipping service, or if you don’t want to deal with the hassle of arranging multiple freight forwarders to carry your shipment, DDP is your answer.

What is Delivered Duty Paid (DDP)?

DDP is one of the 11 International Commercial Terms (Incoterms) used in trade, where the seller is responsible for delivering the goods to the buyer's destination and arranging both export and import clearances.

🚨 Point of Risk Transfer!

When the seller delivers the goods at the buyer’s destination, ready to be unloaded. The buyer is in charge of unloading the goods.

When is it best to choose DDP?

As a buyer, if you’re looking for a ‘complete’ shipping service, or if you don’t want to deal with the hassle of arranging multiple freight forwarders to carry your shipment, DDP is your answer.

Everything from export clearance to import clearance is arranged by the seller. All you need to do is arrange for the unloading of goods at the final destination.

Simple Scenario Time:

E-Commerce Owner (Buyer): Alex runs an e-commerce store that sells clothing. His warehouse is at 123 Road - Warehouse XYZ, Michigan, USA.

Supplier (Seller): A manufacturer located in China.

Agreed Term: DDP 123 Road - Warehouse XYZ, Michigan, USA.

Seller’s duties: Responsible for export clearance in China, import clearance in US and transportation until the goods reach the Warehouse XYZ in Michigan.

Buyer’s duties: Assist the seller with import clearance and, and arrange for unloading goods at the Warehouse XYZ.

Point of Risk Transfer: The seller delivers the goods at the buyer’s destination ready to be unloaded. The buyer is in charge of unloading the goods.

Cost allocation. Who should pay for what under DDP?

Cost allocation  - who should pay what under DDP:

How is DDP different from DDU?

DDU (Delivery Duty Unpaid) is when duties and taxes have not been paid, so the goods can only get released from customs after payment has been settled.

How is DDP different from DDU?

Daisy Jiang

Proud Co-Founder and CEO of Bookairfreight. Shortly after starting to work in the world of logistics, I was astonished at how difficult and time consuming it was for businesses to get their hands on a simple air freight quote. I saw this as an opportunity to really make a difference in people’s lives, and felt like I had to do something. It was the spark that lit the fire of Bookairfreight’s creation.

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