DDP and DDU both end at the consignee's door, so they look interchangeable on a quotation. They are not. The difference is who stands in front of customs at destination, and that decides the duty payer, the liability for a wrong declaration and what the invoice actually contains.
The one-line difference
Under DDP (Delivered Duty Paid) the seller — or the forwarder acting for the seller — clears the goods for import, pays duty and destination taxes, and delivers. Under DDU (Delivered Duty Unpaid, now normally written DAP) the seller still delivers to the named place, but the buyer clears and pays.
| DDP | DDU / DAP | |
|---|---|---|
| Importer of record | Seller's side, often the forwarder | Buyer or the buyer's broker |
| Duty and tax paid by | Seller, inside the price | Buyer, on arrival |
| Delivery to door | Yes, cleared | Yes, but uncleared |
| If the entry is wrong | Liability sits with the seller | Liability sits with the buyer |
Where a DDP price gets expensive
A DDP quote is a customs position, not a freight rate. It assumes a commodity, an HS code, a duty rate and a declared value. If any of those shift, the difference lands on the party that promised the price.
- Duty rates and low-value thresholds differ by country and change without much notice. A price built on last year's rate is a price built on luck.
- Destination tax treatment differs: a US DDP price usually excludes sales tax, while an EU DDP price has to state clearly whether VAT is included.
- Regulated goods — food, cosmetics, batteries, some electronics and medical items — can require registrations that a seller abroad cannot hold. DDP then becomes impossible rather than expensive.
Where DDU is the safer default
If the buyer already has an importer of record, a customs bond and a broker who knows the commodity, DDU or DAP keeps the entry with the party best placed to defend it. It also separates the freight price from the duty bill, which most finance teams prefer.
The counter-argument is experience: a first-time importer who has never filed an entry will usually cost more in delays than DDP saves in convenience. For new buyers, DDP with a written duty estimate is often the calmer start.
What to send with a DDP request
- Commercial invoice with a real unit price and the Incoterm stated
- Packing list with pieces, carton dimensions and gross weight
- Product description in plain language, plus the HS code if your invoice has one
- Whether the goods are new, used, samples or returns — this changes the entry, not only the duty
Ask for the duty rate and the declared value in writing before you accept a DDP price. If the forwarder cannot show both, the number is an assumption you are paying for.