DDP (Delivered Duty Paid)
Incoterms 2020 rule: seller takes maximum responsibility — delivers to the buyer's premises with all import duties and taxes paid.
In detail
DDP represents the seller's maximum obligation under Incoterms. The seller must deliver the goods to the named place in the destination country, clear import customs, pay all import duties and VAT. For buyers, DDP appears attractive ('everything included'), but in the China-to-Russia trade context it carries significant risks: many suppliers offering DDP use non-compliant schemes — undervalued customs declarations or payments made outside official channels. The consequence: the buyer has no official Russian customs declaration (ДТ) and therefore cannot recover import VAT (20% of goods value) as input tax credit. This is an irreversible financial loss for OSNO-registered companies. When DDP is acceptable: small test orders where VAT recovery is not material; or when the supplier uses a properly licensed Russian customs broker and provides a full official ДТ. Always verify before committing to DDP.
Examples
- →DDP via grey scheme: convenient, but no ДТ = 20% VAT loss. DDP via licensed broker: legal, full documents
Related terms
DAP (Delivered at Place)
Incoterms 2020 rule: seller delivers to a named destination in the buyer's country; import customs clearance and duties remain the buyer's responsibility.
FOB (Free on Board)
Incoterms 2020 rule: seller is responsible until goods are loaded on board the vessel at the named port; all risk and cost pass to the buyer from that moment.
Import VAT (Russia)
Value Added Tax paid at Russian customs upon import — 20% or 10% of (customs value + import duty) — recoverable as input tax for OSNO companies.