Delivered Duty Paid
Maximum seller obligation - seller delivers goods cleared for import with all duties paid. Complete door-to-door service.
When goods placed at buyer's disposal, cleared for import, at destination
Seller's responsibility (maximum obligation - seller insures entire journey)
Consumer 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
Hospital 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
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.
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.
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.
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.
