DDP vs DAP: Who Pays Import Duties? What About DDU?

DDP, DAP… or DDU?
Who pays when your shipment reaches customs? Start with the trade term, not just the shipping price. D D U is older wording, absent from Incoterms twenty twenty. For a new agreement, clarify D A P or another suitable current rule.

One big difference: imports
Under D D P, the seller handles import clearance, duties and taxes. Under D A P, those import responsibilities belong to the buyer. In both, the seller arranges transport to the agreed destination.

Where does risk change hands?
Normally, both rules transfer risk at the named destination. The goods remain on the arriving vehicle, ready for unloading. D D P also requires import clearance. The buyer normally unloads; check the agreed costs.

Duty paid does not mean insured
Neither D D P nor D A P automatically requires cargo insurance. Agree insurance separately, including coverage and claims arrangements. Paying import tax is different from protecting goods against loss.

Compare the complete delivery
Compare quotations for the same shipment and exact delivery point. Check freight, import taxes, brokerage, final delivery and exclusions. A tax-inclusive shipping service is not automatically a complete D D P sale agreement.

Put the responsibilities in writing
Before booking, confirm the importer, required documents and destination rules. Write the trade term, edition and precise delivery address. Then confirm insurance, unloading and possible extra charges. Clear responsibilities prevent expensive surprises.