When you sell to a customer in the United States, one of the first questions is who handles US customs and pays the import duties. The answer depends on the delivery term you agree: DDP or DDU.
What is DDP?
DDP (Delivered Duty Paid) means the seller is responsible for delivering the goods to the buyer's door with all costs paid — freight, US customs clearance, duties and import taxes. The buyer simply receives the goods.
What is DDU?
DDU (Delivered Duty Unpaid) means the seller pays to deliver the goods to the destination, but the buyer pays the import duties and taxes. Strictly speaking, DDU was removed from Incoterms in 2010 and replaced by DAP (Delivered at Place), but "DDU" is still widely used in the industry with the same meaning.
Side-by-side comparison
| DDP | DDU / DAP | |
|---|---|---|
| Who pays freight to door | Seller | Seller |
| Who clears US customs | Seller (via forwarder) | Buyer or buyer's broker |
| Who pays duties & taxes | Seller | Buyer |
| Buyer experience | Simplest — no surprise costs | Buyer must arrange clearance and payment |
| Seller risk | Higher — must price duties correctly | Lower |
When to choose DDP
- You sell to small businesses or consumers who do not have a customs broker
- You sell on Amazon or other marketplaces and ship to fulfillment centres
- Your buyer wants a single landed price
When to choose DDU / DAP
- Your buyer is an established importer with its own customs bond and broker
- Duties are complex or the buyer can claim special programs
- You want to minimise your exposure to tariff changes
Watch out for tariffs
US tariffs on goods from Vietnam and other Asian origins have changed several times since 2025, and the duty-free treatment for low-value shipments is no longer available. Under DDP, the seller carries that risk, so always confirm the current duty rate for your HS code before quoting.