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DDP vs DDU decides who pays the border
DDP (delivered duty paid) means you arrange and typically prepay duties/taxes so the buyer is not surprised at delivery. DDU / DAP-style unpaid leaves the border bill to the buyer — which is how parcels sit, get refused, and turn into not-received or NAS disputes. Pick the Incoterm you can staff; do not invent a duty percent here.
Pair: DDP vs DDU — claim map on Stock. Landed product cost: landed COGS. Carrier proof: WISMO tracking.
What changes
Cash. DDP pulls duties into your cash cycle before delivery. DDU delays that bill to the buyer — or to you after refusal.
CS. DDU needs clear pre-checkout copy. Silent DDU is a dispute factory.
Disputes. Refusal and “I didn’t know about duties” feed consumer codes — not a fraud 3DS fix.
What not to do
Do not invent a universal duty %. Do not promise DDP in ads and ship DDU. Do not fight not-received without checking customs hold. Do not mix this with Amazon A-to-z ownership.
Related: Stock, landed COGS, WISMO, damaged / lost vs NR, refused / RTS vs NR, DDP duty on return, Refunds.
Procedure
- Name the Incoterm you actually ship.
- Match ads and checkout copy to that term.
- Quote duties for the lane — do not invent %.
- Check customs status before not-received fights.
Failure modes
- Calling DDU pure savings.
- Advertising DDP and shipping DDU.
- Inventing a duty percent.
- Fighting customs holds as plain not-received with 3DS.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- DDP vs DDU
- DDP (delivered duty paid): seller typically prepays border duties/taxes. DDU-style unpaid: buyer may face the bill at delivery — and may refuse.
Work with us — We run this job on your accounts. Services
FAQ
- Does DDU mean the buyer always pays happily?
- No. Surprise duties cause refusal, returns, and chargebacks. Price the risk or switch to DDP.
- Is duty inside landed COGS?
- On DDP, duties you prepaid belong in landed cost. On DDU, the buyer faces the bill — your COGS may omit it until a refusal hits.
- Is this WISMO / tracking?
- No. [WISMO](/manuals/wismo-tracking) is carrier scans before fight. This page is who owes the border invoice.