DDP and its importance in current international trade

In our series of explanations on Incoterms: DDP (Delivered Duty Paid)

Today we will talk about one that is gaining a lot of relevance in international trade and especially in Mexico:DDP (Delivered Duty Paid). This term is increasingly popular in operations where the buyer's experience and the simplification of procedures are priorities.

What does DDP mean?

DDP means"Delivered Duty Paid". Under this Incoterm, theseller assumes maximum responsibility, as they commit to delivering the goods to the agreed place in the buyer's country, withall import taxes and duties paid.

In other words:
👉 The buyerdoes not worry about customs procedures, taxes, or international transport, because the seller manages everything.

Why is it important in the current context of Mexico?

With the rise ofnearshoring, many companies are moving their supply chains to Mexico. This has led foreign companies to opt forDDPto simplify the entry of goods into the country, avoiding complications with customs or lack of knowledge of Mexican regulations.

In an environment wherespeed and certainty are essential, DDP allows the buyer to receive the goodsready to use or sell, without friction or delays.

Advantages and disadvantages of DDP

✅Advantages:

• The buyer does not worry about procedures or taxes.
• Ideal for companies without experience in foreign trade.
• Simplifies logistics planning and reduces risks for the client.

⚠️Disadvantages:

• The seller assumes very high risks and costs.
• Requires in-depth knowledge of the legislation of the country of destination (in this case, Mexico).
• An error in the estimation of taxes can generate losses for the seller.

Interesting fact about DDP

Did you know thatDDP is the Incoterm with the greatest responsibility for the seller? It is literally the opposite ofEXW, where the buyer does almost everything.

Practical example in Mexico

Imagine that a company in the United States sellsindustrial machineryto a factory in Querétaro under DDP. The seller is responsible for:
✔ International transport.
✔ Payment of taxes and tariffs in Mexico.
✔ Direct delivery to the client's plant.

To achieve this, you need areliable logistics partner in Mexico, who manages customs clearance, coordinates unloading and takes the machinery from the port or airport to the factorywithout delays and complying with SAT regulations.

This is whereControl Terrestrecomes in: we specialize inland logistics and integrated solutionsthat allow DDP to be truly successful.

What to take into account?

DDP is ideal for clients who seekcomfort and certainty, but it requiresexpert logistics managementon the part of the seller. Understanding when to use it can make the difference between a successful operation and a million-dollar loss.

📩Are you interested in using DDP to import to Mexico?Let's talk and design a safe solution for you!

🔥"DDP does everything for you... but do you know how much that peace of mind costs?"