Who pays for insurance under DDP?

Under DDP the seller has no obligation to insure the goods for the buyer.

Who is responsible for import clearance under DDP?

The seller. The seller acts as importer, which can require a local registration, a tax representative or a branch in the destination country.

Who is responsible for import duties under DDP?

The seller. Can include import VAT and other local taxes. Parties sometimes agree to exclude VAT, which must be written into the contract, and some countries still make the importer pay it.

Who is responsible for unloading at destination under DDP?

The buyer. The buyer unloads, unless the seller's contract of carriage already includes unloading at the destination.

DDP (Delivered Duty Paid) Incoterms® 2020 rule

The seller delivers to the named destination cleared for import and pays import duties and taxes; the buyer only unloads.

In our own words, checked against public explanatory sources. The official rule text is published by ICC.

Transport mode: Any mode of transport
Risk passes: At the destination, before unloading
Seller must insure?: No

Who pays, at a glance

Seller pays or arranges:: packaging, loading at origin, export clearance, pre-carriage, main carriage, insurance, import clearance, import duties, on-carriage.
Buyer pays or arranges:: unloading at destination.

Where risk passes

Risk passes when the goods, cleared for import, arrive at the named place ready for the buyer to unload.

Cost and risk diagram

Rows follow the goods from the seller (top) to the buyer (bottom); the dashed line marks where risk passes. Generated from the table below. Positions are schematic — the named place in your contract decides the exact point.

Who pays for what

Cost item	Paid / arranged by	Notes
Packaging	Seller
Loading at origin	Seller
Export clearance	Seller
Pre-carriage	Seller
Main carriage	Seller
Insurance	Seller	No party has to insure under this rule. The seller carries the transit risk all the way to the named place, so any cover is the seller's choice and cost.
Unloading at destination	Buyer	The buyer unloads, unless the seller's contract of carriage already includes unloading at the destination.
Import clearance	Seller	The seller acts as importer, which can require a local registration, a tax representative or a branch in the destination country.
Import duties	Seller	Can include import VAT and other local taxes. Parties sometimes agree to exclude VAT, which must be written into the contract, and some countries still make the importer pay it.
On-carriage	Seller	The seller pays transport up to the named place, which can be the buyer's premises or another inland point; any further leg is the buyer's.

Insurance

This rule puts no obligation on the seller to insure the goods for the buyer. Either side may still choose to buy cover for its own risk.

Common mistakes

Agreeing DDP without checking that the seller can legally act as importer and register for import VAT in the destination country.
Underestimating the import procedures in the destination country, or how to find a competent customs broker there.

In your ERP and on invoices

Practical consequences of the cost split above for order data, cost bookings and invoice layout. Generic — not specific to any ERP product.

Store the rule code, the edition (for example 2020) and the named place as separate fields on orders, and print all three on the invoice.
Main-carriage freight is a seller cost: expect it on the sales side (as a freight line or built into the price), not as a separate line on the buyer's purchase order.
Cargo insurance is paid by the seller: if you track insurance as a separate cost, book it against the sale.
Import duties are a seller cost: the price must absorb them, and the seller's order flow needs a way to receive and pay duty bills in the destination country.

When to look at another rule

Derived from the cost tables: rules for the same kind of route that differ from DDP in one of export clearance, main carriage, import clearance or insurance.

If the buyer should clear import: CPT, DAP, DPU.

Compare DDP with

Questions about DDP

Where does risk pass from seller to buyer under DDP?: Risk passes when the goods, cleared for import, arrive at the named place ready for the buyer to unload.
Which transport modes can DDP be used for?: Any mode of transport.
Who pays for insurance under DDP?: Under DDP the seller has no obligation to insure the goods for the buyer.
Who is responsible for export clearance under DDP?: The seller.
Who is responsible for main carriage under DDP?: The seller.
Who is responsible for import clearance under DDP?: The seller. The seller acts as importer, which can require a local registration, a tax representative or a branch in the destination country.
Who is responsible for import duties under DDP?: The seller. Can include import VAT and other local taxes. Parties sometimes agree to exclude VAT, which must be written into the contract, and some countries still make the importer pay it.
Who is responsible for unloading at destination under DDP?: The buyer. The buyer unloads, unless the seller's contract of carriage already includes unloading at the destination.

Sources

Checked on 11 October 2026.

Export Development Canada — edc.ca
Netherlands Chamber of Commerce (KVK) — kvk.nl
UK Department for Business and Trade (business.gov.uk) — business.gov.uk
US International Trade Administration — trade.gov
Maersk (chart by Pilot Freight Services) — delivers.maersk.comsecondary