Meaning
Trade rule placing maximum delivery obligations and financial risks on the seller. Under incoterms ddp, the exporter must manage transport and import customs clearance. The seller pays all duties and local taxes applicable at the destination.
This arrangement simplifies the purchasing process for the buyer who only needs to receive the goods.
Cost Allocation
Price quotes under this rule must include the landed cost of the product at the buyer facility. Since incoterms ddp requires the seller to handle foreign taxes, they must understand the tax laws of the destination country. Unexpected increases in customs duties become the sole responsibility of the seller.
This fixed price structure offers the buyer high budget certainty.
Regulatory Burden
Navigating import procedures in a foreign jurisdiction often requires the seller to appoint a local agent. The seller acts as the importer of record during the incoterms ddp process.
Risk Transfer
Liability for the cargo only moves to the buyer once the goods are placed at their disposal at the named place. Until that moment, the seller bears the risk of loss or damage. The incoterms ddp rule includes the unloading phase as a potential point of dispute.
Clear documentation at the delivery site is essential to confirm the final handover.
