Definition
DDP (Delivered Duty Paid) under Incoterms 2020 places maximum obligation on the seller: goods must arrive at the named place cleared for import, duties and taxes paid as agreed, ready for unloading by the buyer. This is educational summary only — not legal or tax advice; VAT/duty treatment depends on your route and parties.
Worked example
DDP Colchester 3PL: the seller’s landed price should already include main freight and import formalities they agreed to fund. Still confirm who files entries and how VAT is handled — do not assume from the three letters alone.
Why it matters for replenishment
DDP unit prices are easier to compare to your sell price, but only if the contract truly includes the duties and taxes you think it does.
Guides & calculators
Educational overview of common shipping terms including Incoterms® 2020 concepts. Not legal, customs or tax advice. Incoterms® is a trademark of the International Chamber of Commerce (ICC). Confirm the exact rule and named place in your contract, and speak to your freight forwarder or adviser for live shipments.