DDP (Delivered Duty Paid)
Last updated: June 14, 2026
- DDP is the Incoterm where the seller bears ALL costs and risks — including import duties, taxes, and customs clearance
- The buyer simply receives the goods — DDP provides maximum convenience and a single all-inclusive landed cost
- Increasingly popular for e-commerce, DG shipments, and B2B transactions where buyers want zero logistics hassle
DDP (Delivered Duty Paid) is an Incoterm where the seller bears ALL costs and risks including import duties, taxes, and customs clearance at the destination. The buyer simply receives the goods. It is the maximum seller obligation under Incoterms 2020 and increasingly popular for e-commerce, DG shipments, and buyers wanting a single all-inclusive landed cost.
Chinese: 完税后交货 (Wán shuì hòu jiāohuò)
DDP vs. DAP vs. FOB
DDP is the maximum seller obligation — seller handles everything including destination import duties. DAP is one step below — seller handles everything EXCEPT destination import duties and clearance (buyer does those). FOB is at the other end — seller only gets goods to the origin port and onto the vessel; buyer handles everything else. The choice between them depends on how much logistics control the buyer wants vs. how much convenience.
Practical Example
A US-based e-commerce company sources 500 units of lithium-battery power banks from a Shenzhen factory. They want the goods delivered to their Amazon FBA warehouse in Los Angeles with a single all-inclusive price — no surprises. Great Hensen provides a DDP quote: $12,500 all-in, covering Shenzhen factory pickup, China export DG compliance (MSDS, DG Packaging Certificate, Maritime DG Declaration), ocean freight, US import duties (3.4% on power banks), customs clearance, and final trucking to the FBA warehouse. The buyer pays $12,500 and the goods arrive at their warehouse door — done.
Related Terms
- Incoterms — the complete set of ICC trade terms including DDP
- B/L (Bill of Lading) — critical transport document in DDP transactions
- Bonded Warehousing — can defer duties in DDP supply chains
Frequently Asked Questions
What is the difference between DDP and DAP?
Under DDP, the seller bears ALL costs including import duties and customs clearance. Under DAP, the seller delivers to a named place ready for unloading, but the BUYER handles import customs clearance and pays import duties. DDP is maximum seller obligation; DAP is one step below. See our Incoterms glossary page for the full comparison.
Is DDP a good choice for e-commerce shipments from China?
Yes — DDP is increasingly the standard for B2B and B2C e-commerce. It gives the buyer a single all-inclusive price with no surprise duties or fees at delivery. For Amazon FBA sellers, DDP simplifies the supply chain — goods arrive duty-paid, ready for sale. However, DDP requires destination-country import expertise.
How does Great Hensen handle DDP for DG shipments?
For DDP DG, we manage the entire chain: China export compliance, freight booking with DG-capable carriers, and destination import clearance via DG-licensed brokers in 50+ countries. DDP is popular for DG e-commerce where buyers want a single landed cost. Contact us for a DDP DG quote.
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