What is the main difference between DDP and EXW?

They split 6 cost blocks differently. export clearance falls to the seller under DDP and the buyer under EXW; carriage to port / terminal falls to the seller under DDP and the buyer under EXW; loading onto main carriage falls to the seller under DDP and the buyer under EXW; main carriage (freight) falls to the seller under DDP and the buyer under EXW; import clearance falls to the seller under DDP and the buyer under EXW; duties and import taxes falls to the seller under DDP and the buyer under EXW.

Where does risk pass under DDP?

At the named destination, ready for unloading, after import clearance.

Where does risk pass under EXW?

When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.

Can DDP and EXW both be used for container shipments?

Yes. Both work for any mode of transport, including containers, air and road.

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DDP vs EXW: who pays what

DDP is Delivered Duty Paid. EXW is Ex Works. Incoterms 2020.

The difference that matters

Export clearance:DDPSeller·EXWBuyer
Carriage to port / terminal:DDPSeller·EXWBuyer
Loading onto main carriage:DDPSeller·EXWBuyer
Main carriage (freight):DDPSeller·EXWBuyer
Import clearance:DDPSeller·EXWBuyer
Duties and import taxes:DDPSeller·EXWBuyer

Full cost split

Cost block	DDP	EXW
Export clearance	Seller	Buyer
Carriage to port / terminal	Seller	Buyer
Loading onto main carriage	Seller	Buyer
Main carriage (freight)	Seller	Buyer
Insurance	Neither obliged	Neither obliged
Unloading at destination	Buyer	Buyer
Import clearance	Seller	Buyer
Duties and import taxes	Seller	Buyer
Risk passes	At the named destination, ready for unloading, after import clearance.	When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.
Transport mode	Any mode	Any mode

What people get wrong

DDP

Many countries will not let a non-resident seller act as importer of record, and unrecoverable import VAT quietly becomes a cost.

EXW

The buyer is formally responsible for export clearance in their supplier’s country, which they often cannot legally do. FCA usually fixes this.

Questions

What is the main difference between DDP and EXW?: They split 6 cost blocks differently. export clearance falls to the seller under DDP and the buyer under EXW; carriage to port / terminal falls to the seller under DDP and the buyer under EXW; loading onto main carriage falls to the seller under DDP and the buyer under EXW; main carriage (freight) falls to the seller under DDP and the buyer under EXW; import clearance falls to the seller under DDP and the buyer under EXW; duties and import taxes falls to the seller under DDP and the buyer under EXW.
Where does risk pass under DDP?: At the named destination, ready for unloading, after import clearance.
Where does risk pass under EXW?: When the goods are placed at the buyer’s disposal at the seller’s premises — before anything is loaded.
Can DDP and EXW both be used for container shipments?: Yes. Both work for any mode of transport, including containers, air and road.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs DDP CFR vs EXW CIF vs DDP CIF vs EXW CIP vs DDP CIP vs EXW CPT vs DDP CPT vs EXW

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.