DDP

Delivered Duty Paid — the Incoterms rule representing the maximum obligation for the seller: the seller delivers the goods to the named destination (buyer's premises or warehouse), cleared for import, with all duties, taxes (including IVA/VAT), and customs charges paid. The buyer's only responsibility is to unload the goods. DDP places all cost, risk, and administrative burden on the seller, making it the simplest and most predictable option for the buyer — the quoted DDP price is the fully landed cost with no surprises. Seller responsibilities: origin transport, export clearance, ocean/air freight, marine insurance, destination port charges, import customs clearance (including hiring a customs broker in the destination country), import duties and taxes, and inland delivery to the buyer's door. DDP is commonly used when: the seller has a local subsidiary or agent that can handle import formalities, or for small/medium shipments where the buyer cannot justify managing customs procedures. In Mexico: a foreign seller offering DDP must have a Mexican fiscal representative or work through a Mexican import agent to pay IGI (import duty) and IVA (16%). Per ICC Incoterms 2020. DDP applies to all transport modes.