What does Delivered Duty Paid (DDP) mean? What is the difference between DDP and DAP? On this page you will get answers to your questions about DDP.
Chantal has been writing about logistics topics for almost two decades and has worked for major international carriers.
Delivered Duty Paid means that the sender of a package pays any import duties and taxes, instead of the recipient paying them (which is usually the standard case). Import duties or import costs are indirect taxes on goods that are imported into a country.
The seller is responsible for delivering the goods to the agreed destination, including all costs and risks up to that point.
The seller bears the responsibility for customs clearance, taxes, customs duties, and other costs associated with the transport of the goods.
This is more advantageous for the buyer, as the seller is responsible for a large part of the costs and risks during transport.
If the recipient cannot pay the import costs, then the carrier cannot hand over the package to the recipient. The payment of import duties is often required upon delivery at the door or in advance via an online payment to the carrier.
The advantage of DDP is that your customer has immediate access to the shipment without having to pay anything for it. Of course, you can then pass these import duties on to your customer or take them on your own account during the sale of your product. From a commercial point of view, this can be an option.
Unfortunately, the amount of import duties and VAT is not simply calculable. You can use our Duties/Taxes calculator to receive an estimation.
You can make this choice when booking your shipment in our shipping platform.
Do you also mention a (correct) goods code, or HS code, on the customs invoice? This way, customs can easily and correctly determine the amount of import duties and other import taxes. Standard import duties are always charged to the recipient of your shipment. We have also created a tool in MyParcelParcel that allows you to easily search for HS codes based on a description. On this page, you can see how the new HS code tool from ParcelParcel works.
The difference between DDP (Delivered Duty Paid) and DAP (Delivered At Place) is that with DAP, the import duties are charged to the recipient, and with DDP, the sender pays them themselves.
Import duties are standardly charged to the recipient of a shipment. This is indicated by the Incoterms term DAP. Incoterms is a standard in international transport of goods and determines the rights and obligations of buyer and seller.
If you receive a package sent from a country outside the EU, it is usually sent to you based on DAP. In this case, the import duties are charged to you, as you are the recipient.
There is also the Incoterm DDP, where the sender takes on any import duties, instead of the recipient paying them.
Would you like to ask a question to one of our employees? Of course, you can contact our logistics specialists by phone at 085 877 1656 (Netherlands) or 038 087 099 (Belgium).
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