What Is DDP Door-to-Door Delivery? Who Pays for What?
DDP explained simply: who covers which costs, who the importer of record is, how it differs from EXW, FOB and CIF, and how the TurnOn Global model works for customers.
For many companies that want to bring products from the Far East, the real challenge is not finding the product but managing its journey from the factory to the warehouse. Freight, insurance, customs, taxes and inland transport each involve different parties. DDP delivery is a structure that takes most of this burden off the buyer. In this article we explain DDP in plain language and compare it with other common delivery terms.
What Does DDP Mean?
DDP (Delivered Duty Paid) is one of the Incoterms rules published by the International Chamber of Commerce. Under this rule, the delivering party brings the goods to the destination named by the buyer, handles import customs clearance, pays the duties and taxes, and hands over the goods ready for unloading. Risk also stays with the delivering party up to that point.
Among the Incoterms rules, DDP places the least responsibility on the buyer. That is why it is often described as "door-to-door" or "turnkey" importing.
Who Pays for What?
Under DDP, all of the following costs are the responsibility of the delivering party and are reflected to the buyer as a single price:
- The goods themselves (production cost)
- Costs in the country of origin: local transport, export customs formalities, port and loading charges
- International freight and insurance
- Turkish customs duties, VAT and other import costs; customs brokerage, storage and port services
- Additional steps where needed, such as IMEI registration for SIM-enabled devices
- Inland transport from the port of arrival to the buyer's address
Who Is the Importer of Record?
Under DDP, the party listed as the importer on the customs declaration (the importer of record) is the delivering company. Compliance with regulations, the accuracy of the declaration, payment of taxes and obtaining required permits are therefore its responsibility. The buyer does not deal with customs directly.
How the TurnOn Global Model Works for the Customer
TurnOn Global takes on the process as the importer in Turkey. At a high level, the flow is:
- The customer shares their needs and the target product, and a quotation is agreed.
- Production is followed and quality is checked before shipment.
- Freight, insurance and loading are planned.
- Customs clearance in Turkey and, where needed, IMEI registration are completed.
- The goods are delivered to the customer's address by inland transport.
- The customer receives one invoice covering the whole process, with no need to deal separately with customs or carriers.
TurnOn Global's service fee is calculated on the amount excluding Turkish taxes. Items such as customs duty and VAT are therefore not included in the base on which the service fee is calculated.
DDP Compared with EXW, FOB and CIF
| Term | Seller's responsibility | Buyer's responsibility |
|---|---|---|
| EXW | Makes goods available at its own premises | Loading, export formalities, freight, insurance, import and inland transport |
| FOB | Loads goods on board at the port of shipment | Freight, insurance, import formalities, taxes and inland transport |
| CIF | Pays freight and minimum insurance to the destination port | Destination port costs, import formalities, taxes and inland transport |
| DDP | Delivers goods, duties paid, to the buyer's address | Usually only unloading the goods |
With CIF the seller pays the freight, but risk passes to the buyer once the goods are loaded on board at the port of shipment. With EXW and FOB the buyer also has to manage parts of the process abroad.
Conclusion
DDP simplifies importing for companies doing it for the first time and for wholesalers who prefer to spend their time on their own business. At TurnOn Global we manage every stage from production to your door on your behalf. If you would like a DDP quotation for your product, you can reach us via WhatsApp or the contact form.
