DDP means the seller arranges and pays import duty and taxes. DDU, now usually called DAP, leaves them to the buyer. The choice changes the delivery experience, the landed cost and who carries the customs risk.
DDU is the older term. Under Incoterms 2010 and later, the equivalent term is DAP. Many carriers and sellers still say DDU, so it helps to confirm which term is actually in the contract.
DDP and DAP side by side
| Point | DDP | DDU / DAP |
|---|---|---|
| Who clears customs | Seller or its agent | Buyer or its agent |
| Who pays duty and taxes | Seller | Buyer |
| Delivery experience | No surprise invoice at the door | Buyer may receive a duty or VAT bill before delivery |
| Risk | Seller carries duty and clearance risk | Buyer carries duty and clearance risk |
| Best fit | DTC orders where a clean delivery matters | Buyers who can clear customs themselves, or routes where DDP is unavailable |
Why DDP is common for direct-to-consumer orders
A customer who has already paid for the product does not want a second invoice from a carrier. DDP moves the customs step behind the scenes. The seller or its logistics partner clears the goods and pays the duty, so the delivery looks like a domestic order.
For a brand, DDP also makes the landed cost visible earlier. The duty is part of the quote instead of a variable that appears after the sale.
Where DAP still makes sense
DAP can be the better choice when the buyer has its own customs broker, when the destination route does not support DDP, or when the buyer can recover import VAT and wants to control the clearance. B2B shipments to a business with a broker often fall into this group.
It is also a fallback when a product category is restricted or when the seller cannot act as importer of record for that destination.
What to check before choosing DDP
- Product restrictions and carrier acceptance for the category.
- Duty rates and tax treatment in the destination country.
- Who is the importer of record and who holds the customs bond.
- De minimis thresholds and how they apply to the order value.
- Returns and how duty is handled on returned goods.
- What happens if the duty rate changes after the quote.
DDP is not available on every route. Confirm the lane, the product and the destination before quoting a delivered price. Our DDP delivery page covers the operating side.
How to avoid surprise fees
Put the Incoterm in the quote and on the commercial invoice. State who pays duty, who clears customs and what happens if the shipment is held. If a carrier offers a door-to-door service, ask whether duty is included or billed later.
For DTC orders, make the promise specific: delivered duty paid, no additional charges at the door, with the destination and product category in writing.
FAQ
Is DDU the same as DAP?
In practice, yes. DDU was replaced by DAP in Incoterms 2010. Both leave import duty and taxes with the buyer. Confirm the term named in the contract rather than relying on the abbreviation.
Who is the importer of record under DDP?
Usually the seller or its appointed agent, depending on the country and the arrangement. The importer of record is legally responsible for the declaration, so this should be explicit in the contract.
Is DDP available for every product?
No. Batteries, liquids, cosmetics, food and high-duty categories can face carrier restrictions or extra clearance requirements. Check the route and the product before promising a delivered price.
Can I switch from DAP to DDP?
Often, but not always. The destination, carrier and product category all need to support it. Ask for the DDP rate on the same lane before assuming the switch is available.
What if the duty is higher than expected?
The contract decides who absorbs the difference. A DDP quote should state how rate changes, reclassification or customs adjustments are handled. Do not assume the carrier will absorb them.
This page explains the commercial difference between the terms. It is not legal or tax advice. Confirm the treatment with a customs broker or tax adviser for your destination.
