Under Incoterms, DDP (Delivered Duty Paid) means the seller is responsible for everything, including import duties and customs clearance, and delivers the goods ready to use at the buyer’s door. DDU (Delivered Duty Unpaid) meant the seller delivered to the destination but left import duties, taxes, and clearance to the buyer. The key thing to know in 2020 and beyond: DDU is no longer an official Incoterm. It was replaced by DAP (Delivered at Place), which carries the same meaning. Sellers and buyers still say DDU in conversation, but contracts should use DAP.
What Incoterms are
Incoterms, published by the International Chamber of Commerce, are standardized trade terms that define exactly where the seller’s responsibility ends and the buyer’s begins, covering cost, risk, and who handles customs. Getting the term right prevents disputes over who pays duty, who arranges delivery, and who bears the risk if cargo is damaged in transit. For Miami importers pulling containers from PortMiami and Port Everglades, the chosen Incoterm shapes the entire clearance and delivery plan.
DDP: Delivered Duty Paid
With DDP, the seller carries maximum responsibility. They arrange export, main carriage, insurance, import clearance, duties, and final delivery. The buyer simply receives the goods. DDP is attractive to buyers who want a hands-off, all-in landed price, but it puts a heavy burden on the seller, who must understand the destination country’s customs brokerage rules and pay its duties, often through a local agent.
When DDP makes sense
DDP works well for e-commerce, samples, and buyers who lack import expertise. The risk for sellers is unexpected destination costs, so many pair DDP with a customs broker and a reliable delivery partner in the destination market.
DDU / DAP: Delivered at Place
Under DAP (the term that replaced DDU), the seller delivers the goods to the agreed destination but the buyer handles import clearance and pays duties and taxes. This splits responsibility more evenly and is common when the buyer has its own broker and prefers to control clearance, including the ISF filing and entry. Buyers who import regularly often prefer DAP because they can manage duty costs and clearance timing themselves.
Choosing the right term
Choose DDP when you want a single all-in price and minimal involvement in clearance; choose DAP (DDU) when you have import capability and want control over duties and customs. Whichever you pick, the destination-side logistics, clearance, drayage, and delivery, determine whether the term actually works in practice. Understanding the broader relationship between a freight forwarder and a carrier helps you assign these roles correctly.
Get clearance and delivery handled in Miami
Whether your terms are DDP or DAP, Go Freight coordinates customs support, drayage, and final delivery through one Miami team, so the Incoterm on paper matches what happens at the port. Explore our freight forwarder services.
Frequently asked questions
Is DDU still an Incoterm?
No. DDU was removed from the official Incoterms and replaced by DAP (Delivered at Place), which has the same meaning. The industry still uses DDU informally, but contracts should reference DAP under Incoterms 2020.
Who pays duties under DDP?
The seller pays all import duties, taxes, and clearance costs under DDP and delivers the goods fully cleared. The buyer receives the goods without handling any customs obligations.
What is the difference between DDP and DAP?
Under DDP the seller pays import duties and clears customs; under DAP the seller delivers to the destination but the buyer pays duties and handles clearance. DAP is the current term that replaced the old DDU.
Make your Incoterms work on the ground in Miami
Request a free quote or call (786) 445-0150 to align your trade terms with real clearance and delivery.