DDP Featured Image

DDP incoterms: Meaning, terms and conditions

DDP (Delivery Duty Paid) incoterms are certainly the easiest transaction terms for the importer. Their simplicity, clear framework, and adaptation make them a good option for both the seller and the buyer under certain circumstances.

What exactly are DDP incoterms, what do they entail, and when do you use them? Let’s find out!

What does DDP mean?

Incoterms are published by the International Chamber of Commerce (ICC), which revises and updates them every ten years.

DDP, which stands for Delivered Duty Paid, is an incoterm suitable for any mode of transportation and is known for being the easiest shipping process for the buyer.

Under DDP incoterm, the seller bears all costs and responsibilities, from managing the goods at the origin point to delivering them at the designated place in the destination country. He also pays for the fees related to importation. DDP is actually the only incoterm where the seller is required to pay for both export and import charges.

Not everyone should choose to work with DDP incoterms, as most of the shipping process is managed by the seller. Having some experience and already being familiar with shipping activities is essential for sellers who use DDP.

DDP incoterm rule
Delivered Duty Paid

SIAM Shipping Alert : SIAM Shipping offers expertise in production outsourcing from Thailand and beyond. Our experienced team handles it all - from sourcing to shipping - so you can focus on growing your business. Don't hesitate to contact us via Whatsapp, or request a free shipping quote.

What are the buyers and the sellers responsibilities with DAP?

As we said, under DDP Agreement, the seller has far more responsibilities than the buyer. Let’s take a closer look at both parties’ obligations.

Seller’s obligations under DDP:

  • Manage the packaging and labeling of items;
  • Load goods onto a local carrier (truck, van, etc.) and pay for the charges related to this operation;
  • Transport and deliver goods to the shipping terminal;
  • Remove goods from the local carrier and load them onto the main carrier, then pay the Origin Terminal Handling Charges (OTHC);
  • Handle the export clearance, which includes export duties, taxes, and customs clearance;
  • Pay freight charges for the transportation;
  • Transfer items to local transportation upon arrival at the terminal (port, airport, etc.) and pay the Destination Terminal Handling charges (DTHC);
  • Deliver the goods to the final destination;
  • Handle the import clearance, which includes import duties, taxes, and customs clearance.

Buyer’s obligations under DDP:

  • Unload the goods at their final destination.

With DDP Agreement, the seller is responsible for the entire shipping process, and he is responsible for any risk of loss and damages to goods. Note that with DDP incoterm, the seller is not required to pay for insurance coverage, but it is highly recommended.

SIAM Shipping info: SIAM Shipping helps with document preparation and offers a customs clearance service. To ensure the project's feasibility, we carefully review the entire bundle of documents for every shipment we handle. Contact us via WhatsApp, and receive a free quote in less than 24 hours.

When to use DDP Agreement?

As a buyer, it is interesting to use DDP Agreement when you want to simplify your shipping process. The seller, on the other hand, needs to be experienced. He also needs to make sure that he has enough knowledge in the customs regulations of the destination country.

DDP Agreement should be used:

  • When the exporter is experienced and familiar with the bureaucratic procedures in the destination country;
  • As an added value for the customer, which makes the seller more competitive;
  • When the exporter has a significant network and has access to competitive freight rates;
  • When the trade-relationship is a long-term one, and can be trusted;
  • For high-value items;
  • For new importers who want to minimize risks and focus on their core business.

SIAM Shipping info: Do you like our article today? For your business interest, you may like the following useful articles :

SIAM Shipping Advise : We help you with the entire sourcing process so don't hesitate to contact us if you have any questions!

  • Having trouble finding the appropriate product? Enjoy our sourcing services, we directly find the right suppliers for you!
  • You don't trust your supplier? Ask our experts to do quality control to guarantee the condition of your goods!
  • Do you need help with the logistics? Our international freight department supports you with door to door services!


SIAM Shipping | Procurement - Quality control - Logistics


Alibaba, Dhgate, made-in-china... Many know of websites to get supplies in Asia, but how many have come across a scam ?! It is very risky to pay an Asian supplier halfway around the world based only on promises! DocShipper offers you complete procurement services integrating logistics needs: purchasing, quality control, customization, licensing, transport...


Communication is important, which is why we strive to discuss in the most suitable way for you!

Comments for this post are closed.