DDP vs DDU vs DAP: What's the Difference? Complete Incoterms Guide 2026

Incoterms That Define Door-to-Door Shipping

When shipping from China, three Incoterms frequently create confusion: DDP (Delivered Duty Paid), DDU (Delivered Duty Unpaid — now officially replaced by DAP in Incoterms 2020), and DAP (Delivered at Place). Understanding the difference is critical because it determines who pays for duties, who bears risk during transit, and who handles customs clearance.

DDP — Delivered Duty Paid

Under DDP terms, the seller bears maximum responsibility. The seller handles everything from origin factory pickup, export customs, international freight, insurance, import customs clearance, duties and taxes, and final delivery to the buyer's named destination.

• Seller pays: Export clearance, freight, insurance, import duties, VAT, import clearance, final delivery
• Risk transfer: When goods are made available to the buyer at the destination, ready for unloading
• Buyer's role: Receive goods and assist with import documentation if needed
• Best for: Buyers who want a hands-off, predictable landed cost; e-commerce sellers; first-time importers

DAP — Delivered at Place

Under DAP (the modern replacement for DDU in Incoterms 2020), the seller delivers goods to the named destination, but the buyer is responsible for import customs clearance, duties, and taxes. Risk transfers when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading.

• Seller pays: Export clearance, freight, insurance (optional based on agreement), delivery to destination
• Buyer pays: Import duties, VAT, import clearance, unloading
• Risk transfer: When goods arrive at destination ready for unloading
• Best for: Experienced importers with their own customs broker; buyers who want control over duty optimization

DDU — The Legacy Term

DDU (Delivered Duty Unpaid) was removed from Incoterms in 2010 and replaced by DAP in Incoterms 2020. However, the term DDU is still widely used colloquially in the freight industry, especially on China–Russia/Central Asia routes, where it means essentially the same as DAP: seller delivers to destination, buyer handles import duties and clearance.

If a Chinese forwarder quotes DDU, they mean: we handle everything up to your door except import duties and customs clearance, which you arrange locally.

Side-by-Side Comparison

When to Choose DDP vs DAP

Choose DDP when:

• You want a single, all-inclusive price with no surprises
• You don't have a trusted customs broker in the destination country
• You're shipping to Russia/Central Asia where white customs procedures are complex
• You're an e-commerce seller needing predictable landed costs
• You value convenience over maximum cost optimization

Choose DAP/DDU when:

• You have an established relationship with a local customs broker
• You want to optimize duty payments through your own classification strategy
• You have tax registration and can reclaim import VAT
• You're an experienced importer familiar with destination regulations
• You're shipping large volumes where duty savings justify the administrative effort

Practical Example: Shipping Electronics to Moscow

Say you're shipping $50,000 of electronics from Guangzhou to Moscow. The HS code attracts 10% duty and 22% VAT.

• Under DDP: Your forwarder quotes an all-in price including freight ($5,500), duty ($5,000), VAT ($12,100), broker ($200), and delivery ($200). Total: ~$73,000 to your door. No additional bills, no customs hassle.
• Under DAP: The forwarder quotes freight + delivery ($5,900). You arrange customs in Moscow, paying duty ($5,000), VAT ($12,100), and your broker ($300). Total: ~$23,300 in logistics/fees on top of the $50,000 goods. You handle the process but may save if your broker negotiates a lower duty classification.