What DDP means
DDP is one of the International Chamber of Commerce's Incoterms 2020 rules, the standard delivery terms used on international quotes. Under DDP, the seller delivers when the goods are at your disposal at the named place, cleared for import, on the arriving vehicle and ready to unload. Until then the seller carries all the costs and risks: export clearance, freight, import clearance and the import duty.
For a clothing order, that means the quote is close to your full landed cost. You do not book freight, hire a customs broker or pay duty at the border; the goods simply arrive. Our landed cost guide shows everything a DDP price has to cover.
DDP vs DAP, FOB and EXW
Who handles each stage
- DDP vs DAP: both deliver to your address, and in both the seller carries the risk until the goods arrive. The difference is import: under DAP you clear the goods through customs and pay the duty and taxes yourself; under DDP the seller does.
- DDP vs FOB: under FOB the seller's job ends when the goods are loaded on the ship at the port of export. You pay the sea freight, carry the risk at sea, and handle import. DDP moves all of that to the seller.
- DDP vs EXW: EXW is the opposite end: the goods are made available at the factory and you handle everything from there, including export clearance.
What a DDP price includes, and what it may not
- Freight to your address, with the seller carrying the risk of loss or damage on the way.
- Customs clearance at both ends, including the broker's fees.
- Import duty, at whatever rate applies to the product and where it was made.
- Import VAT or GST: check. Under the DDP rule the seller pays the import taxes, but some quotes exclude them, often written as "DDP, VAT unpaid", and leave them for you to pay. Ask which applies.
- Unloading: not included. You unload the goods at your address, at your risk.
If the seller pays the import VAT or GST as the importer, a VAT-registered business may not be able to reclaim it the way it could if it imported the goods itself. Ask how the tax will appear on your invoice before you compare a DDP quote with an FOB one.
Who is the importer?
Under DDP the seller has to clear the goods for import, so the seller, or a customs broker working for it, acts as the importer. In the UK and the EU, whoever makes the import declaration needs an EORI number; in the US, the importer of record is responsible for the entry and the duty. The International Chamber of Commerce advises using DAP instead when a seller cannot handle import clearance in the buyer's country.
For you, this is mostly good news: the paperwork, the tariff classification and the duty are the seller's responsibility. It is still worth asking which tariff code and duty rate the quote assumes, so you understand how the price is built.
Is DDP right for you?
- Choose DDP for a first order, if you have no customs broker or freight forwarder, or if you want one price you can plan around.
- Choose FOB or FCA if you already have a forwarder with good rates, ship large volumes, or want to control the freight and the import yourself.
- Choose DAP if you want door delivery but prefer to import the goods in your own name, for example to reclaim the import VAT directly.
Whichever term you choose, compare quotes on the same basis. Our guide on how to find a clothing manufacturer shows an FOB quote and a DDP quote side by side.
DDP with Nevear
We can deliver DDP: tell us the delivery address and quantities, and your quote states what the price includes. The minimum is typically 50 pieces per item, samples take 2–3 weeks, and bulk orders usually arrive 3–4 weeks from the order date, shipping included. Our country guides for the US, UK, Canada, Australia and New Zealand list the duty by production country.