DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid) represents the maximum obligation for the seller in international trade—the mirror image of EXW. Under DDP terms, the seller handles everything: export clearance, ocean or air freight, marine insurance, import clearance, duty payment, and final delivery to the buyer's specified location. The buyer simply receives goods at their door, fully cleared and ready to use.

When a supplier quotes "DDP New York USD 4.50/meter," that price includes every cost until the fabric arrives at the buyer's warehouse in New York. No surprise charges, no customs complications, no logistics coordination required from the buyer.

This simplicity makes DDP attractive for several scenarios in textile trade. Sample shipments benefit from DDP because the administrative burden of importing a few meters of fabric often exceeds the shipping cost itself. Small orders from buyers without import experience avoid the learning curve of customs procedures. E-commerce and direct-to-consumer shipments need the seamless delivery that DDP provides.

The challenge falls entirely on the seller, who must understand destination country import regulations, accurately estimate duties using HS codes, maintain relationships with customs brokers abroad, and accept risk throughout the entire journey. Duty rates can fluctuate, customs procedures vary by country, and any delays or problems become the seller's responsibility to resolve.

For these reasons, DDP pricing typically carries a premium that reflects both the additional services and the risk the seller assumes. Buyers should compare DDP quotes against FOB or CIF alternatives plus their own estimated import costs to determine which approach offers better value.

One common variation is "DDP excluding VAT" (DDP ex VAT), where the seller handles everything except destination country value-added tax, which the buyer pays directly. This avoids complications around VAT registration and reclaim that vary by jurisdiction.