DDP means Delivered Duty Paid. Under Incoterms® 2020, the seller handles import clearance and import duties, with delivery at the named destination ready for unloading. The named place and practical shipment arrangements still need to be clearly agreed.
Reference: ICC Academy: DAP and DDP.
Separate the sale terms from the freight quotation
A buyer and seller may agree DDP in their sale contract. A logistics quotation describes the services arranged for the shipment. Check that the two align: the destination, responsibilities, required documents and payment arrangements should not contradict each other.
Name the destination precisely
A city name alone may leave important delivery details unresolved. Provide the full receiving address, ZIP code, site contact and access conditions. For a warehouse, confirm appointment procedures and unloading arrangements. For an assigned fulfillment center, use the current destination information.
Check the import arrangement
Ask who will be identified as importer, who will act as customs broker and what authorizations and product records are required. Resolve these questions before dispatch. A short label on a quotation is not a substitute for an agreed operating plan.
DDP, DAP and legacy DDU at a glance
| Term | Import clearance | Import duties and taxes | Delivery point |
|---|---|---|---|
| DDP | Seller | Seller, where the sales contract says so | Named place, goods ready for unloading |
| DAP | Buyer | Buyer | Named place, goods ready for unloading |
| DDU (legacy) | Not an Incoterms® 2020 rule. Agree the current rule, the named place and the version in writing, then check that the quotation repeats the same arrangement. | ||
The trade term in the sale contract and the services in the freight quotation answer different questions. Both documents should describe the same destination and the same division of work.
Review charges beyond the headline rate
Compare quotes on the same cargo, route and delivery scope. Ask how examinations, storage, waiting, container detention and address changes are treated. Record the quotation’s validity and the assumptions behind it.
Ask these five questions before booking
- What exact destination and receiving arrangement does this quotation cover?
- Which documents and product details are needed before dispatch?
- Which charges are included, excluded or conditional?
- What milestones does the delivery estimate cover?
- Who will handle a change, hold or failed delivery?
Planning a container shipment from China?
Use our FCL DDP shipping from China to the USA page to prepare a shipment enquiry. Send the packing list, cargo-ready date and receiving address so the quotation reflects the actual move.
LHD international Logistics