The difference between these three terms comes down to one sentence: who is responsible for import duty and customs clearance. Get it wrong, and your cargo gets stuck at the port.
The Essential Difference in One Sentence
DDP: The seller pays duty, handles customs clearance, and delivers to the door.
DAP: The seller delivers to the destination; import duty and customs clearance are the buyer's responsibility.
DDU: An older term, similar in meaning to DAP, meaning the seller does not pay import duty.
In one sentence: Under DDP the seller covers everything; under DAP/DDU the buyer takes on the duty.
Side-by-Side Comparison
| Term | Full Meaning | Who Pays Duty | Who Handles Import Clearance | Best For |
|---|---|---|---|---|
| DDP | Delivered Duty Paid | Seller | Seller | Buyer has no import entity and needs door-to-door service |
| DAP | Delivered at Place | Buyer | Buyer | Buyer has an import entity and wants to clear customs themselves |
| DDU | Delivered Duty Unpaid | Buyer | Buyer | An older term, now largely replaced by DAP |
Why DDP Is Common for US Sellers
Most platform sellers don't have a US import entity, so DDP is simpler.
Under DDP the seller bears customs clearance responsibility and needs a compliant import solution.
Duty rates and amounts are subject to live policy and quotations — don't assume.
Which One to Choose and When
Consignee is an individual or has no import entity: go DDP.
Consignee has a US company and a customs broker: DAP works, and they handle duty themselves.
Low-value goods via parcel channels: tax is usually withheld by the platform — follow the channel's rules.
When unsure, confirm the consignee's qualifications first, then decide on the term.
One shipment corresponds to only one term — don't write two on the same shipment, as it easily leads to disputes.
Where to Write the Term in the Contract
Trade terms must be written into the purchase contract or order and kept consistent with the quotation.
Also specify the declared value, commodity name, and the consignee's tax ID or company information.
A verbal "DDP to door" agreement doesn't count — only what's on paper holds up.
Key Points for Documents and Declaration
Invoice and packing list information must be accurate, with commodity names matching the value.
Consignee information must be complete; personal shipments need a reachable consignee phone number.
Be ready to provide supplementary documents at any time during a Customs Exam — that's how you get released faster.
De minimis thresholds and duty starting points are subject to live US policy — don't judge by old experience.
Common Misjudgments
Misjudgment 1: Assuming DAP includes duty. DAP only covers delivery, not import taxes and fees.
Misjudgment 2: The contract says DDP, but no customs clearance was actually arranged. With no one to clear customs at the port, the cargo gets stuck.
Misjudgment 3: Under-declaring to pay less tax. US Customs inspects strictly, and the cost of being caught is high.
Misjudgment 4: Writing only "DDP" without the term. Responsibility boundaries are vague, and problems lead to finger-pointing.
