DDP vs EXW: who pays what

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

The difference that matters

Full cost split

Cost blockDDPEXW
Export clearanceSellerBuyer
Carriage to port / terminalSellerBuyer
Loading onto main carriageSellerBuyer
Main carriage (freight)SellerBuyer
InsuranceNeither obligedNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceSellerBuyer
Duties and import taxesSellerBuyer
Risk passesAt 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 modeAny modeAny 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 DDPCFR vs EXWCIF vs DDPCIF vs EXWCIP vs DDPCIP vs EXWCPT vs DDPCPT 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.