DDP (Delivered Duty Paid) is an incoterm, which is a standardized contract for international shipments. Under DDP, the seller is responsible for arranging all transportation and associated costs, including export clearance and customs documentation required to reach the destination port. The seller also assumes all responsibilities and costs for delivering the goods to the named place of destination, including import clearance and payment of taxes and/or import duty. This makes DDP beneficial for the buyer as the seller assumes most of the liability and costs for shipping. However, the risks to the seller are broad and include VAT charges, bribery, and storage costs if unexpected delays occur.

DDP is the only incoterm rule that places responsibility for import clearance and payment of taxes and/or import duty on the seller. This can be problematic for the seller, especially in countries with complex or bureaucratic import clearance procedures. The seller is responsible for all costs and risk until the goods are unloaded.

DDP was developed by the International Chamber of Commerce (ICC) to standardize shipping globally, and it is most commonly used in international shipping transactions. The benefits of DDP lean in favor of the buyer as they assume less liability and fewer costs in the shipping process, which places a great deal of burden on the seller. DDP is used when the cost of supply is relatively stable and easy to predict, and it is normally used by advanced suppliers.