DDP stands for Delivered Duty Paid, an DDP incoterms 2020 in which the seller delivers goods to the buyer’s location in the destination country, taking full responsibility for import clearance and all taxes or duties. For the buyer, the experience feels as smooth as buying locally.
Benefits & Best Use Cases of DDP interms 2020
Pros
- Buyers don’t need to handle any customs procedures—seamless experience
- Buyers don’t need to handle any customs procedures—seamless experience
Applicable scenarios
- B2C/C-end independent station cross-border sales
- Electronic products, energy storage equipment, household appliances
- Orders from high-end customers or countries with strict policies
DDP interms 2020 Risks and Legal Limitations
DDP also carries risks—especially when political or legal shifts occur that prevent sellers from acting legally in the destination country. For example:
In May 2025, former U.S. President Donald Trump urged Harvard University to cap international student enrollment at 15% and disclose all foreign student names. This highlights rising sensitivity toward foreign entities in the U.S.
If a seller cannot legally act as the Importer of Record, DDP interms 2020 is not viable. In such cases, alternative Incoterms like DAP or CPT should be used.
Practical Example
Suppose you run a Chinese energy battery business, and a U.S. client requests DDP delivery. You must manage transport, declare at U.S. customs, pay duties and sales taxes, and deliver to the client’s address. However, if U.S. law prohibits foreign firms from acting as importers, you legally cannot fulfill the DDP contract.
Tips for Sellers
Confirm with buyers whether DDP is viable
Research import laws in the destination country
Define responsibilities (like unloading) clearly in the contract