DDP Explained: What It Means for UK Importers and Exporters

When you see DDP, Delivered Duty Paid, a trade term that defines who handles shipping, taxes, and customs in international sales. Also known as Delivered Duty Paid, it means the seller takes full responsibility for getting goods to the buyer’s door — including paying all import duties, VAT, and handling customs clearance in the UK. This isn’t just paperwork. It’s about who bears the risk, the cost, and the delay when a shipment hits the border.

DDP is one of the most buyer-friendly Incoterms, but it’s also the most complex for sellers. If you’re a UK business importing from China, Germany, or the US under DDP, you get your goods with no extra bills. But if you’re the seller, you’re on the hook for everything: transport, insurance, customs forms, and even local taxes like UK VAT. That’s why many UK importers push for DDP — they want predictability. And why many exporters avoid it unless they have local partners or agents here.

DDP doesn’t mean the seller owns the goods until delivery. It just means they pay for the journey. The moment the goods arrive at your warehouse or storefront, ownership transfers. But if customs holds the shipment because of missing paperwork, the seller pays the storage fees — not you. That’s the power of DDP. But it’s also why you’ll see fewer UK companies offering it. The risk is theirs. The cost is theirs. The blame is theirs if something goes wrong.

Related to DDP are other Incoterms like DAP, Delivered at Place, where the seller delivers to a named location but doesn’t pay import duties, and EXW, Ex Works, where the buyer picks up goods at the seller’s door and handles everything from there. DDP is the opposite of EXW. One puts all the burden on the seller. The other puts it all on the buyer. Most UK SMEs don’t have the infrastructure to handle DDP as sellers — but they love it as buyers.

After Brexit, DDP became even more critical. UK businesses importing from the EU now face customs checks, VAT rules, and potential delays. If your supplier says they’ll ship under DDP, you know exactly what to expect: no surprise charges, no waiting for HMRC to release your goods. But if they say DAP, you’re suddenly responsible for paying £500 in VAT and filling out a customs declaration — right when you’re trying to launch a product.

You’ll find posts here that break down how DDP works in real UK trade scenarios — from small e-commerce shops bringing in goods from Asia, to manufacturers shipping machinery to clients in London. You’ll see how companies avoid DDP traps, how to negotiate it with suppliers, and why some UK businesses now use local warehouses to cut the risk. You’ll also learn how DDP ties into other essentials like customs clearance, VAT registration, and international shipping documentation.

This isn’t theory. These are the same rules that caused delays at Dover, led to lost sales in 2021, and forced dozens of UK startups to rethink their supplier contracts. Whether you’re importing once a year or shipping weekly, understanding DDP means you won’t be caught off guard. And that’s worth more than any discount on the product itself.