DDP Explained: Delivered Duty Paid Guide
DDP (Delivered Duty Paid) is the Incoterms 2020 delivery term with maximum seller responsibility. The seller pays for transport, insurance, export and import customs, duties, and taxes, delivering goods to the buyer's doorstep.
What Is DDP?
DDP (Delivered Duty Paid) is the Incoterms 2020 delivery term with the maximum level of seller responsibility. The seller bears all costs and risks of delivering goods to the named destination, including import customs clearance and payment of duties and taxes. The buyer's only obligation is to accept delivery.
DDP is the opposite of EXW. While EXW places everything on the buyer, DDP places everything on the seller. This makes DDP the most buyer-friendly delivery term and is commonly used in e-commerce and door-to-door shipping services.
Kolay Parsiyel's door-to-door delivery service operates on DDP terms, covering all costs and customs from pickup in Turkey to delivery in Europe.
Responsibility Split
| Task | Seller | Buyer |
|---|---|---|
| Export customs | Yes | |
| Main transport | Yes | |
| Insurance (recommended) | Yes | |
| Import customs | Yes | |
| Duties and taxes | Yes | |
| Destination delivery | Yes | |
| Unloading from vehicle | Yes |
DDP Advantages
For the Buyer
- Zero hassle: No customs, transport, or documentation to manage
- All-in price: The quoted price includes everything, no surprise costs
- Simplicity: Ideal for buyers without import experience
For the Seller
- Competitive edge: Door delivery differentiates from competitors quoting EXW/FOB
- Customer loyalty: Convenience builds long-term relationships
- Process control: Full visibility over the entire logistics chain
DDP vs DAP
| Criteria | DDP | DAP |
|---|---|---|
| Import customs | Seller | Buyer |
| Duties and taxes | Seller | Buyer |
| Transport | Seller | Seller |
| Price level | Highest | High (duties excluded) |
DAP is DDP minus customs duties. Use DAP when the seller cannot or prefers not to handle import customs in the destination country.
Frequently Asked Questions
Does the buyer pay anything under DDP?
No additional costs. All duties, taxes, and transport are included in the DDP price. The buyer simply accepts delivery.
Does the seller need a tax registration in the destination country?
For paying import duties, the seller may need a fiscal representative or EORI number. In some EU countries, fiscal representation is mandatory for non-EU companies.
Does Kolay Parsiyel offer DDP delivery?
Yes, Kolay Parsiyel provides DDP door-to-door service from Turkey to Europe. All customs, duties, and delivery are included.
Is DDP more expensive than DAP?
Yes, by the amount of import duties and taxes. For EU imports with A.TR (zero customs duty), the difference is mainly the import VAT.
References
- ICC Incoterms 2020
- EU IOSS VAT System
- European Commission Customs Guide
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