Key takeaways
- DDP (Delivered Duty Paid): one price covers freight, duty, taxes, clearance, and delivery.
- DDU (Delivered Duty Unpaid) was replaced by DAP in the Incoterms rules, but the term is still used.
- Under DDU or DAP the buyer pays duty and taxes and needs a customs broker at arrival.
- DDP gives a fixed landed cost. DDU can look cheaper until the duty invoice arrives.
What DDU means
Under DDU, the seller delivers the goods to the agreed place in the destination country, but the import duty, taxes, and customs clearance are the buyer's problem. The 2010 Incoterms update retired DDU and replaced it with DAP (Delivered at Place), which works the same way. Many suppliers and carriers still say DDU.
What DDP means
Under DDP, the shipper takes on the cost and risk all the way to your door, including clearing customs and paying the duty. You receive the goods with nothing left to pay. For a brand or Amazon seller, that turns a pile of variable fees into one landed cost per unit.
DDU vs DDP side by side
- Import duty and tariffs: DDU, the buyer pays. DDP, included in the price.
- Customs clearance: DDU, the buyer arranges a broker. DDP, handled by the shipper.
- Price certainty: DDU, the final cost is known after arrival. DDP, known before you order.
- Delays: DDU shipments can sit at the port while the buyer arranges clearance. DDP clearance is planned ahead.
- Best for: DDU suits importers with their own broker and bond. DDP suits businesses that want one number.
A simple example
Say a supplier quotes $6,000 for goods plus $1,800 freight, "delivered." On DDU terms you also pay the duty, which on many Chinese products includes a Section 301 tariff, plus customs fees and a broker. Those can add thousands and arrive weeks later. On DDP terms, the quote already includes them, so the number on the invoice is the number you pay.
The catch with cheap DDP offers
DDP only works if the goods are classified and valued correctly. Some low DDP quotes rely on under-declaring the value or using the wrong HTS code. That can lead to seizures, penalties, and back-duty demands aimed at the importer. Ask who the importer of record is and how the duty was calculated before you accept.
Where DDP Advantage fits
Our DDP shipping quotes freight, duty, clearance, and delivery as one price, with the HS code and duty checked before we quote. DDP Advantage goes further and bundles verified factory sourcing, full customs clearance, and all import duties into one flat rate.
What changes when the goods are going to Houston
Houston importers choose between two ocean routings. All-water through the Panama Canal lands at Port Houston's Barbours Cut or Bayport terminals and is often cheaper. Landing on the West Coast and moving by rail to Houston is usually one to two weeks faster. The customs entry can be filed at either the port of arrival or inland, so the choice changes the paperwork plan as well as the transit time.