Comparison Aspect	DDU (Delivered Duty Unpaid)	DDP (Delivered Duty Paid)
Core Responsibility	Seller delivers goods to the buyer’s destination but does not pay import duties/taxes.	Seller delivers goods to the buyer’s destination and pays all costs (including import duties/taxes) until final delivery.
Risk Transfer	Risk transfers to buyer when goods arrive at the destination and are ready for unloading.	Risk remains with seller until goods are placed at the buyer’s disposal (after customs and duties are handled).
Cost Liability	Seller pays: - All transport costs to the destination. Buyer pays: - Import duties/taxes - Unloading costs.	Seller pays: - All transport costs (origin to destination) - Export/import customs fees - Import duties/taxes - Unloading costs.
Customs Clearance	Buyer handles import clearance.	Seller handles both export and import clearance.
Unloading	Buyer responsible for unloading.	Seller responsible for unloading (unless agreed otherwise).
Incoterms® Status	Replaced by DAP in Incoterms® 2010 (outdated but still used in older contracts).	Valid under Incoterms® 2010/2020.
Use Case	Buyer prefers control over import processes and is familiar with local regulations.	Buyer wants a seamless, all-inclusive delivery without involvement in customs.

Key Difference Summary

DDU: Seller covers transport costs but not import duties/taxes.
DDP: Seller assumes full financial and logistical responsibility, including duties/taxes.

DDU: Risk transfers at the destination (when goods are unloaded).
DDP: Risk transfers only after all formalities (e.g., customs, duties) are completed.

DDU is outdated under modern Incoterms® (replaced by DAP), but may still appear in legacy contracts.

Seller must navigate foreign customs, tariffs, and regulations, which can be costly and time-consuming.

DDP provides buyers with predictable costs (all-inclusive), while DDU leaves buyers exposed to unforeseen import fees.

Choose DDU (or its replacement DAP) if the buyer prefers control over import processes.
Use DDP to simplify the buyer’s role and ensure seamless delivery.

Use Case Example

DDU: A U.S. exporter ships goods to a German warehouse, covering shipping costs but requiring the buyer to handle customs and duties.
DDP: A Chinese manufacturer exports furniture to a French retailer, managing all logistics, customs, and taxes for door-to-door delivery.

Shipping From China To America

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