DDP Incoterm and Brazil: what the seller takes on and when to use it

Under the DDP Incoterm (Delivered Duty Paid), the seller takes the goods to the named place in the buyer's country, with import clearance done and duties and taxes paid. Risk only passes on arrival, with the goods ready for unloading. DDP puts the heaviest load on the seller, and it works for any mode of transport.

For anyone selling to consumers abroad, DDP removes the moment no cross-border customer wants to live through: a tax bill at the door. It also has a limit that catches foreign suppliers off guard. DDP cannot be used for imports into Brazil.

What does the seller take on under DDP?

Under DDP, the seller is responsible for everything until the goods are delivered at destination, including the part that happens in the buyer's country. The official description used in Siscomex (Brazil's federal foreign trade system) says the seller, "in addition to clearance, bears all risks and costs, including taxes, fees and other charges levied on import". Source: Camex (Brazil's Foreign Trade Chamber) Resolution No. 16/2020.

In practice, the seller covers:

• packing, inland haulage and export clearance at origin;
• international carriage to the named place of destination;
• import clearance in the buyer's country;
• import duty, local consumption tax and brokerage fees;
• the risk to the goods until they reach the agreed place.

The buyer receives and unloads the goods, unless agreed otherwise, and provides any information the seller needs for the import. According to the ICC, risk passes when the goods arrive at destination and are placed at the buyer's disposal, ready for unloading from the arriving vehicle. Source: ICC Academy, Incoterms® 2020.

DDP is one of the 11 rules published by the International Chamber of Commerce (ICC). The other ten are covered in the guide What are Incoterms®?.

Can DDP be used for imports into Brazil?

No. Camex Resolution No. 16/2020, which sets the sales terms accepted in Siscomex records, is categorical: because a foreign seller has no legal standing to clear goods into the country, DDP "cannot be used for Brazilian imports", and the parties should choose DAP or DPU instead. The ICC repeats this barrier in its survey of national restrictions on the Incoterms® 2020 rules, updated in January 2025.

The reason is practical. In Brazil, the import declaration is filed and the taxes are paid by an importer registered locally, with a CNPJ (company tax ID) and Radar (the customs registration for importers), or by a trading company acting on its behalf. If a foreign supplier offers "DDP São Paulo", ask for DAP in the contract and let your customs broker handle clearance. You avoid a term that Brazil's own system does not recognise.

For ocean cargo, the alternatives are the port rules, where the buyer handles the import from the start, explained in the guides to the FOB Incoterm and Brazil and the CIF Incoterm in Brazil.

What about consumers buying from abroad?

In cross-border retail, a DDP-like experience arrives by another route. When a Brazilian consumer buys from a site certified under the Remessa Conforme programme (the Receita Federal's compliance scheme for cross-border e-commerce), taxes are paid upfront, at checkout. Under the current rule, import duty is zero up to US$ 50 on those sites and 60% above that, with a US$ 30 deduction, while ICMS (the state sales tax) ranges from 17% to 20% depending on the state. Source: Receita Federal (Brazil's federal revenue and customs authority), Remessa Conforme and parcel tax pages, September 2026.

It is not a DDP contract but a Receita Federal compliance programme. How it works, and what Law No. 15,502/2026 changes, is covered in the guide to Remessa Conforme in Brazil.

How do Brazilian exporters use DDP when selling abroad?

Exports are where DDP earns its keep. A Brazilian brand selling online to consumers in the United States or Europe uses DDP to charge the full landed cost at checkout and deliver with no extra bill. In express shipping, this is done through the duties and taxes paid by the sender service: DHL Express pays the destination taxes and invoices the shipper afterwards. Without that option, the default is to bill the receiver. Source: DHL Express, 2026 Service and Rate Guide for Brazil.

Destinations have changed the rules over the past year, and your margin feels it first. In the United States, since 29 August 2025 goods from every country have lost the de minimis exemption for shipments up to US$ 800. Source: CBP, August 2025. An executive order of 20 February 2026 kept the suspension in place. Source: The White House.

On top of that come the Section 301 surcharges on Brazilian products. According to MDIC (Brazil's Ministry of Development, Industry, Trade and Services), 23.1% of Brazilian exports to the US are subject to them: 25%, 12.5% or 37.5% when both apply to the same product. Source: MDIC, July 2026. Under DDP, that money comes out of your pocket. The product lists are in the guide to US Section 301 tariffs on Brazilian goods.

In the European Union, from 1 July 2026 consignments worth up to €150 pay a temporary flat customs duty of €3 per item, counted by tariff classification, scheduled to run until 1 July 2028. Source: European Commission, June 2026. Since July 2021, VAT has been due from the first euro, and a seller registered for IOSS (the EU's Import One-Stop Shop for VAT) collects it at checkout on consignments up to €150. Source: European Commission.

DDP, DAP or DPU: what is the practical difference?

All three deliver in the buyer's country. What changes is who unloads and who pays for the import. The table sums it up:

Rule of thumb: what separates DDP from DAP is who pays duty on entry. What separates DPU from DAP is who unloads. All three work for any mode, including air and express.

When does DDP pay off, and when is DAP better?

DDP pays off when you sell to consumers, at low values, into destinations you know well. In that scenario the tax cost is predictable and the conversion gain pays for the operation. DAP is better when the customer is a business with its own broker that prefers to handle the import, or when the product needs a licence that only the local importer can request.

Avoid DDP in three cases. First, when the destination does not let a foreign party clear goods, as in Brazil. Second, when destination tariffs change often and you cannot pass the difference on. Third, when you cannot classify the product in the destination's tariff code, because a wrong calculation turns into your loss on the very first shipment.

How do you price a DDP sale without losing margin?

Work out the full landed cost at destination before you publish a price. This is the sequence:

1. Classify the product in the destination's tariff code, which shares the Harmonized System base with Brazil's NCM.
2. Look up the import duty and any surcharges that apply to goods of Brazilian origin.
3. Calculate the local consumption tax and check whether its base includes freight and insurance.
4. Add brokerage fees and the charge for the duties and taxes paid by the sender service.
5. Leave room for exchange rates, since taxes are calculated in the destination currency on the day of entry.
6. Review the spreadsheet every time the destination changes its rules.

A simple example: a product sold for US$ 120 to the US and subject to both Section 301 surcharges carries an extra 37.5%, or US$ 45, before the product's normal tariff. Under DDP, that US$ 45 has to be in the price or it comes out of your margin.

Frequently asked questions about the DDP Incoterm

Sources

• ICC Academy: DAP & DDP Incoterms® 2020 explained
• ICC: National regulatory barriers to the Incoterms® 2020 rules (January 2025)
• Camex (Official Gazette): Resolution No. 16 of 2 March 2020
• Receita Federal: Programa Remessa Conforme: o que é e como funciona
• Receita Federal: Quanto vou pagar de impostos? (international parcels)
• DHL Express: 2026 Service and Rate Guide, Brazil
• CBP: Factsheet: Suspension of Duty-Free De Minimis Treatment
• The White House: Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries (February 2026)
• MDIC: Reach of US tariff measures on Brazilian exports (July 2026)
• European Commission: Guidance and legal text on temporary flat fee on low-value imports (June 2026)
• European Commission: Customs formalities for low value consignments

Delivered, with no bill at the door

Selling abroad on DDP terms takes two things: the destination's numbers under control and a partner that clears the goods there and bills you, not your customer. With express shipping, that comes in the same shipment, with end-to-end tracking.

If that is the next step for your Brazilian store or factory, open a DHL Express business account and set up your international sales with duties and taxes paid by the sender.