DDP (Delivered Duty Paid) 

 

Under DDP, the seller delivers goods cleared for import, paying all duties and taxes, placing maximum obligation and risk on the exporter. 
  

Popular in e‑commerce to present landed pricing, DDP can expose sellers to unfamiliar VAT regimes and licensing in complex B2B flows. Compliance risks call for expert brokerage and tax advice. 

How is DDP fulfilment executed?

 

Delivered Duty Paid (DDP) fulfilment is enabled through a combination of IOSS (Import One-Stop Shop) and local entity registrations, allowing duties and taxes to be managed upfront. Customs entries are pre-filed, duties are paid in advance, and parcels are injected directly into last-mile delivery networks to ensure a smooth and frictionless consumer delivery experience.

Why is DDP risky for B2B? 

 

Complex duty drawback, transfer‑pricing and product‑liability issues may arise in destination countries.

How to mitigate risk?  

 

Use fiscal representation, automated duty calculation and clear service‑level contracts.

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