DDP
Delivered Duty Paid
Maximum seller obligation - seller delivers goods cleared for import with all duties paid. Complete door-to-door service.
Visual Guide - Cost & Risk Transfer
Obligations & Cost Breakdown
Seller Obligations
- Deliver goods at destination cleared for import
- Pay ALL import duties and taxes
- Bear all risks throughout
- Arrange all transport and insurance
Cost Responsibility:
Buyer Obligations
- Take delivery at named place
- Unload goods (unless agreed otherwise)
Cost Responsibility:
Risk Transfer Point
When goods placed at buyer's disposal, cleared for import, at destination
Insurance Requirement
Seller's responsibility (maximum obligation - seller insures entire journey)
Real African Trade Examples
E-commerce: China → Nigeria
DDP ShenzhenConsumer electronics for online retail
Chinese e-commerce platforms like AliExpress offer DDP pricing to Nigerian buyers. Seller handles all logistics including Nigerian customs clearance through local agents.
DAP Lagos if Nigerian buyer has a customs broker
Medical Equipment: Germany → Rwanda
DDP MunichHospital diagnostic equipment
German medical suppliers deliver complete turnkey installations including customs clearance. Rwanda's import process is streamlined.
DAP Kigali if hospital has import license and broker
Common African Trade Usage
Growing rapidly in e-commerce imports into Africa. Used by multinational suppliers delivering complete solutions (medical equipment, industrial machinery, IT infrastructure). Less common for African EXPORTS because sellers rarely have import capability in destination countries. Challenging due to complex import regimes in many African countries.
Common Mistakes with DDP
Not Accounting for VAT Recovery
The Mistake: Seller pays VAT/GST in destination country but cannot recover it.
The Problem: In many countries, only registered local businesses can claim VAT refunds. Foreign sellers paying DDP duties effectively lose the VAT amount.
The Solution: Use DAP instead, or register for VAT in the destination country. Factor unrecoverable VAT into DDP pricing.
Underestimating Import Duties
The Mistake: Pricing DDP based on estimated duties that turn out to be much higher.
The Problem: African import duties can be 20-35% or more. Unexpected levies, inspection fees, and port charges erode margins.
The Solution: Get a detailed import duty assessment before quoting DDP. Include a contingency of 5-10% for unexpected charges.
Not Registering as Importer
The Mistake: Attempting to clear goods without being registered as importer of record.
The Problem: Many African countries require the importer to be a registered entity. Foreign sellers may not qualify.
The Solution: Appoint a local customs broker or agent as importer of record. Budget for agent fees in DDP pricing.
When to Use DDP
Best For
- Maximum convenience for buyer
- E-commerce/direct sales
- When seller has import capability in destination
- Small/sample shipments
Avoid When
- When seller cannot recover VAT in destination country
- Complex import regulations
- When import duties are unpredictable
- Countries with frequent tariff changes