Delivered Duty Paid (DDP) is an Incoterm under which the seller takes on all costs and risk of getting goods to a named destination in the buyer’s country. That includes export and import clearance, duties, and taxes, so the buyer receives a single fully landed price and does nothing at the border. Of the eleven Incoterms, DDP places the maximum obligation on the seller and the minimum on the buyer.
How it works
The seller arranges freight, handles both export and import customs, pays any duties and import taxes (such as VAT or GST), and delivers to the agreed address. Risk of loss or damage stays with the seller until the goods are made available at that destination. The buyer’s only real job is to unload. Because the seller must clear customs in a country where it may not be registered, DDP can be operationally heavy, which is why many sellers cap it at specific destinations.
Why it matters
For B2B buyers, DDP removes surprise charges. There is no separate customs invoice, no broker fee, and no held shipment. That predictability often wins deals, but the seller has to price those duties and taxes into the quote accurately or absorb the loss. The named place and the responsible party for import VAT should always be spelled out in writing.
Example on Shopify
Say a US supplier quotes a UK trade customer 40 units. Under DDP, the quote line total already includes shipping, UK import duty, and import VAT to the buyer’s warehouse. When you build that quote on Shopify, you would fold those landed costs into your line items or a shipping and duties line so the accepted total matches what the buyer actually pays at checkout, with nothing owed on delivery.
See related terms in the B2B quoting glossary.