Similar to DTP, DDP means Duties & Taxes are paid by the sender and not the receiver. However, there is a significant difference – DDP requires the sender to be the Importer of Record, which is the person officially responsible for making sure delivery is compliant with all legal regulations in the destination country. However, the Importer of Record also often needs to be tax-registered in the destination country. Some carriers have created their own services whereby the receiver can be the Importer of Record, however this is not a standardised service offered by all carriers.
What’s the catch?
If you do not have an intermediary in the destination country, your parcels may be rejected at the border. Germany, for example, is especially strict in enforcing this and will not clear any DDP parcels if the sender is not tax-registered in Germany. Often, sellers make the mistake of thinking they can send parcels DDP to pay for Duties & Taxes so customers don’t have to, but find parcels aren’t cleared at Customs because their company is not tax-registered in the country.