Glossary > Contracts & Shipping > Delivered Duty Paid (DDP)

Delivered Duty Paid (DDP)

Contracts & Shipping

In Simple Terms

DDP means all-in pricing - the seller takes care of everything, including import duties and taxes, and delivers the coffee to your door cleared and ready to collect. It's the simplest option for buyers but usually comes at a higher upfront price.

What does Delivered Duty Paid (DDP) mean?

DDP is the most buyer-friendly Incoterm. The seller handles everything - freight, insurance, export clearance, import customs, and all applicable duties and taxes in your country. The coffee arrives at your named destination cleared and ready to collect. You don't touch a piece of paperwork.

The trade-off is cost: DDP will always price higher than FOB or CIF for the same coffee, because every logistics cost is bundled in. But what you gain is simplicity and predictability - no surprise import charges, no freight invoices to reconcile, no customs delays that are suddenly your problem to manage.

For roasters just getting started with direct or near-direct sourcing, DDP can be a useful entry point. It removes complexity while you're building relationships and understanding the import chain. As your volumes grow, moving to FOB or FCA and managing your own freight typically becomes more cost-effective.