——SOURCING GLOSSARY
DDP vs DDU — what's the difference (and which still exists)?
The difference is simple: under DDP (Delivered Duty Paid) the seller delivers to your door and pays the import duties and customs. Under DDU (Delivered Duty Unpaid), the seller delivers to your door but you pay the import duty and clearance.
One important update though — “DDU” was officially retired from Incoterms back in 2010. Its modern name is DAP (Delivered at Place). People still say “DDU,” but on a contract you should use DAP.
DDP vs DDU (DAP), side by side
DDP
DDU / now DAP
Delivered to your door
Yes
Yes
Who pays import duty & taxes
Seller
You (buyer)
Who clears import customs
Seller
You
Your effort
Lowest
You handle duty/clearance
Official Incoterm?
Yes (2020)
DDU no; use DAP
The DDP catch most buyers miss
DDP sounds perfect — the seller handles everything to your door. But under DDP, the seller (or their agent) acts as importer of record in your country. That can backfire.
In the US and EU it can create VAT/tax-registration issues, and a seller motivated to keep costs down may under-declare the value at customs — leaving you exposed if it’s audited.
For many buyers, DAP (you clear import yourself) keeps you in control of your own customs record.
Frequently asked questions
No. DDU was removed from Incoterms in 2010 and replaced by DAP (Delivered at Place). The meaning is the same — buyer pays import duty — but use “DAP” on contracts.
The seller. DDP (Delivered Duty Paid) means the seller covers import duties, taxes and clearance to your door.
DDP is the most hands-off, but you lose control of your customs declaration. DAP keeps you as importer of record, which many buyers prefer for compliance.
Customs terms decide who carries the tax risk. Get them right before you order.
We help you navigate Incoterms, customs clearance, and landed cost optimization.