ORIGIN PICKUP
Collection from the supplier, factory or agreed origin location can be arranged as part of the door-to-door shipping process.
CHENGYU SHIP · INCOTERMS® 2020 GUIDE
DDP INCOTERMS® 2020
DDP INCOTERMS® 2020
DELIVERED DUTY PAID
A practical guide to DDP shipping — including seller and buyer responsibilities, customs clearance, duties and taxes, risk transfer, DDP vs DAP, and door-to-door shipping from origin to destination.
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INCOTERMS® 2020
DDP
DELIVERED DUTY PAID
SELLER TAKES
MAXIMUM RESPONSIBILITY
THE BASICS
WHAT IS DDP SHIPPING?
DDP stands for Delivered Duty Paid. Under the Incoterms® 2020 DDP rule, the seller takes responsibility for arranging the shipment to the agreed destination and for completing both export and import formalities.
The seller also bears the transportation costs and risks up to the named destination and is responsible for applicable import duties and taxes under the agreed transaction.
Delivery occurs when the goods are placed at the buyer's disposal at the named destination, cleared for import and ready for unloading.
DDP = A HIGH-RESPONSIBILITY SELLER TERM
For the buyer, DDP can make international purchasing easier
because much of the freight, customs and delivery process
is coordinated before the goods reach the final destination.
DDP RESPONSIBILITIES
WHAT DOES DDP SHIPPING INCLUDE?
The exact service depends on the agreed named destination, shipment and local customs requirements, but a DDP transaction generally places the following responsibilities on the seller.
EXPORT HANDLING
Export documentation and origin-country customs procedures are coordinated before international transportation.
INTERNATIONAL FREIGHT
The main international transportation can be arranged by sea freight, air freight or another suitable transport mode.
IMPORT CUSTOMS CLEARANCE
Under DDP, responsibility for import customs formalities sits with the seller rather than being left to the buyer.
DUTY & TAX HANDLING
Applicable import duties and taxes are the seller's responsibility under the DDP rule, subject to local laws and the agreed transaction.
FINAL DELIVERY
The shipment is transported to the named destination, such as a warehouse, business address or other agreed delivery point.
DOOR-TO-DOOR FLOW
ONE SHIPMENT. ONE COORDINATED PROCESS.
Instead of arranging each stage independently, a DDP shipping solution can coordinate the major logistics steps from origin to destination.
01SUPPLIEROrigin
→02EXPORTCustoms
→03FREIGHTSea / Air
→04IMPORTCustoms
→05DELIVERYDestination
RISK TRANSFER
WHERE DOES DDP RISK TRANSFER?
DDP is an arrival rule. The seller bears the risk until the goods reach the named destination, are cleared for import and are placed at the buyer's disposal on the arriving means of transport, ready for unloading.
SELLER RISKORIGINPickup + export clearance
→SELLER RISKMAIN TRANSPORTSea / air / multimodal
→SELLER RISKIMPORT CLEARANCESeller responsibility
→RISK TRANSFERDDP NAMED PLACEReady for unloading
→BUYER RISKUNLOADINGNormally buyer
THE NAMED DESTINATION MATTERS.
Avoid vague wording such as “DDP USA.” The exact named place or delivery address helps define where the seller's delivery obligation and risk end.
COST ALLOCATION
WHO PAYS UNDER DDP?
DDP places the broadest cost responsibility on the seller among the Incoterms® 2020 rules, subject to the named destination, the sales contract and local law.
| COST / TASK | SELLER | BUYER |
|---|---|---|
| Goods & export packaging | YES | — |
| Origin pickup / inland transport | YES | — |
| Export customs clearance | YES | — |
| Main international freight | YES | — |
| Import customs clearance | YES | — |
| Applicable import duties & taxes | YES | — |
| Transport to the named DDP destination | YES | — |
| Unloading at destination | If included in seller's carriage contract | Normally buyer |
| Cargo insurance | Not required by DDP | Not required by DDP |
DDP VS DAP
WHAT'S THE DIFFERENCE?
DDP and DAP both involve delivery to a named destination, but the responsibility for import customs and duties is different.
DDP
DELIVERED DUTY PAID
- Seller arranges transportation to destination
- Seller handles export clearance
- Seller handles import clearance
- Seller is responsible for applicable import duties and taxes
- Buyer receives goods at the named destination
VS
DAP
DELIVERED AT PLACE
- Seller arranges transportation to destination
- Seller handles export clearance
- Buyer handles import clearance
- Buyer is generally responsible for import duties and taxes
- Delivery occurs at the named destination before unloading
!
IMPORTANT
DDP DOES NOT MEAN “EVERYTHING WITHOUT CONDITIONS.”
The named destination matters, and customs requirements vary by country, product and importer structure. Certain goods may require permits, registrations, certificates or other information before a DDP shipment can be accepted.
Always provide complete cargo information before shipment so the route, customs requirements and DDP feasibility can be checked in advance.
CONTRACT WORDING
HOW SHOULD DDP BE WRITTEN?
Do not write only “DDP USA” or “DDP Canada.” State the named destination as precisely as possible and identify the applicable Incoterms® version.
Before agreeing to DDP, confirm that the seller can legally and practically complete import clearance and satisfy local tax, licensing and product requirements at destination.
RECOMMENDED FORMAT
DDP [Full Delivery Address], California, USA
Incoterms® 2020
TERM + PRECISE NAMED DESTINATION + INCOTERMS® 2020
CHENGYU SHIP DDP ROUTES
DOOR-TO-DOOR FREIGHT SOLUTIONS
ROUTE 01
CHINA → USA
Sea freight, air freight and DDP door-to-door shipping.
VIEW ROUTE → ROUTE 02VIETNAM → USA
Freight solutions from Vietnamese suppliers and factories to U.S. destinations.
VIEW ROUTE → ROUTE 03CHINA → CANADA
Sea freight, air freight and door-to-door delivery to Canada.
VIEW ROUTE →
SHIPPING METHODS
DDP BY SEA OR AIR?
DDP describes the responsibilities between buyer and seller. It does not require one specific transportation mode.
01
DDP SEA FREIGHT
Suitable for larger commercial shipments where transportation cost is more important than speed.
- FCL
- LCL
- Container shipping
- Final delivery
DDP AIR FREIGHT
Suitable for urgent, time-sensitive and smaller commercial shipments requiring faster transportation.
- Air cargo
- Customs clearance
- Duty handling
- Final delivery
WHO USES DDP?
WHEN CAN DDP BE USEFUL?
01
FIRST-TIME IMPORTERS
Businesses that do not want to coordinate multiple freight and customs providers separately.
02
E-COMMERCE SELLERS
Sellers replenishing inventory and looking for a more coordinated door-to-door logistics process.
03
SMALL & MID-SIZE BUSINESSES
Importers that prefer predictable logistics coordination rather than managing each transport stage.
04
MULTI-SUPPLIER BUYERS
Businesses purchasing from several suppliers can combine warehouse consolidation with international DDP shipping.
DDP SHIPPING COST
HOW IS A DDP QUOTE CALCULATED?
There is no single fixed DDP rate. The final quotation depends on the cargo, origin, destination, transportation method, customs requirements and final delivery.
For an accurate quotation, provide complete cargo information before shipment.
REQUEST A DDP QUOTE01Cargo Type
02Weight & Dimensions
03Carton / Pallet Count
04Product Value & HS Code
05Origin Location
06Final Delivery Address
07Shipping Method
08Special Cargo Requirements
HOW IT WORKS
CHENGYU SHIP DDP PROCESS
01
SEND CARGO DETAILS
Tell us what you are shipping, cargo size, weight, origin and final destination.
02
CHECK THE ROUTE
We review transportation options, cargo requirements and DDP feasibility.
03
RECEIVE YOUR QUOTE
We prepare a freight solution based on your shipment and delivery requirements.
04
PICKUP & EXPORT
Cargo is collected from the supplier and prepared for international transportation.
05
FREIGHT & CUSTOMS
International transportation and applicable customs procedures are coordinated.
06
FINAL DELIVERY
Cargo moves to the agreed destination after import procedures are completed.
COMMON QUESTIONS
DDP SHIPPING FAQ
When does risk transfer under DDP? +
Risk transfers at the named destination when the goods have been cleared for import and are placed at the buyer's disposal on the arriving means of transport, ready for unloading.
Does DDP include customs clearance? +
Yes. Under the Incoterms® 2020 DDP rule, the seller is responsible for both export and import customs formalities.
Does DDP include import duties and taxes? +
Under DDP, the seller is responsible for applicable import duties and taxes required under the transaction. Actual customs and tax requirements depend on the country, cargo and local regulations.
Is DDP the same as door-to-door shipping? +
They are closely related but not identical concepts. Door-to-door describes the logistics movement from origin to destination, while DDP is an Incoterms® rule defining responsibilities between seller and buyer.
Who unloads the goods under DDP? +
Under the DDP delivery rule, the goods are delivered at the named destination on the arriving means of transport, ready for unloading. The buyer normally handles unloading, unless otherwise covered by the agreed transportation arrangement.
Can DDP be used for air freight? +
Yes. DDP can be used with any mode or combination of transport, including sea freight, air freight and multimodal transportation.
Can every product ship DDP? +
Not automatically. Some products may require licenses, certifications, permits, special customs treatment or additional documentation. Cargo must be reviewed before shipping.
WANT TO LEARN MORE?
VIEW ALL 11 INCOTERMS →
DDP IS ONLY ONE OF 11 INCOTERMS®.
Compare DDP with EXW, FCA, FOB, CIF, DAP and the other international trade rules.
IMPORTANT NOTE
This page provides general logistics information and does not replace the official ICC Incoterms® 2020 rules, legal advice, tax advice or customs advice. DDP feasibility and import requirements vary by destination, product and transaction. Confirm the applicable requirements before shipping.
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