For a new shipping agreement, use a named current Incoterm rather than relying on the old shorthand DDU. DAP and DDP both describe delivery to an agreed destination, but allocate import clearance and import charges differently. Neither term guarantees customs release, product eligibility or a fixed all-inclusive bill.
The International Trade Administration's Incoterms overview lists DAP and DDP among the Incoterms 2020 rules for any transport mode. Specify the named place and the edition in the sales agreement. This article is an operating checklist, not legal advice.
DAP and DDP in the order workflow
| Question | DAP | DDP |
|---|---|---|
| Who arranges import clearance? | Generally the buyer | Generally the seller |
| Who bears applicable import duties and taxes? | Generally the buyer | Generally the seller |
| Must importer eligibility be checked? | Yes | Yes |
| Is product approval automatic? | No | No |
| Is unloading automatically included? | Do not assume it | Do not assume it |
A courier's “duties billed to sender” option and a full DDP sales obligation are not necessarily the same service. Ask what the carrier actually undertakes and what remains with the seller or buyer. The forwarder does not automatically become the importer of record.
Five questions before quoting DDP
- Who is legally able to act as importer for this product and destination?
- Who appoints and authorizes the customs broker?
- What value, origin and tariff classification support the declaration?
- Which taxes, broker fees and exceptional charges are included?
- Who handles a customs question, examination, refused delivery or reassessment?
Write the answers into the quote and customer-facing delivery terms. If the intended importer cannot meet local requirements, revisit the arrangement before accepting the order.
Keep market rules separate
For the US, do not assume the historic low-value duty-free treatment applies to an ordinary China-origin commercial parcel. Confirm current entry and tariff treatment with the broker. Lack of a low-value exemption does not by itself mean every shipment must use the same formal-entry process or that every product has the same tariff rate.
For the EU, IOSS concerns VAT on eligible low-value distance sales; it is not an Incoterm. The July 2026 small-parcel customs duty changes also mean “under €150” must not be advertised as automatically duty-free. See the IOSS and VAT guide for the distinction.
For Great Britain, direct-sale VAT treatment depends on matters including consignment value, where goods are located and the buyer. Marketplace transactions and Northern Ireland require their own analysis. Do not apply the EU settings to all UK addresses.
DAP can work when the buyer understands it
DAP is not limited to business buyers. It can be used for consumer deliveries when the arrangement is lawful, clearly disclosed and operationally practical. However, an unexpected request for import payment can lead to a refused parcel.
Before checkout, explain who may collect charges and what is excluded from the displayed price. Customer support needs a script that matches the actual contract—not a generic “all taxes paid” message.
Design the exception path
A good shipment plan identifies an owner for invalid tax data, disputed classification, customs inspection and a buyer who does not respond. Include the escalation contact, evidence needed and treatment of storage or return charges.
FulfillNexa coordinates China-origin fulfillment and transport planning. Its 8,000 m² Dongguan ecommerce site and 3,000 m² Shenzhen oversized/transshipment hub have different roles. Customs representation, tax registration and any overseas importer service must be expressly confirmed rather than inferred from a logistics quotation.
FAQ
Is DDU still the best term to put on a new contract?
Use an agreed current rule, commonly DAP where the buyer handles import obligations, and name the destination and edition. Old shorthand can conceal different expectations.
Does DDP mean the warehouse pays every possible charge?
No. Define the seller's obligations and the provider's contracted scope. Exceptional costs and legal responsibilities still need attention.
Is IOSS the same thing as DDP?
No. IOSS is a VAT mechanism for eligible transactions; DDP is a commercial allocation of responsibilities.
Can DDP eliminate customs delays?
No. Authorities can examine shipments or ask for evidence regardless of the delivery term.
Sources and verification links
Operational rules can change. Check the linked primary sources and confirm shipment-specific requirements before booking.
- International Trade Administration: Know Your IncotermsOfficial source
- CBP importing guidanceOfficial source
- EU Council: small-parcel customs duty from July 2026Official source
- HMRC: VAT on direct sales into the UKOfficial source