Freight & Logistics
DDP vs. DDU Shipping from China: What's Actually Included in the Price
By Alice Wu, CEO & Founder Published · Last updated
Short answer
Under DDP, the seller or forwarder pays import duties and taxes as part of the quoted price; under DDU/DAP, you pay them separately at destination. DDP suits first-time importers who want one predictable number; DDU suits established importers with their own customs broker.
The Core Difference in One Sentence
DDP (Delivered Duty Paid) means the seller or forwarder handles and pays import duties and taxes as part of the quoted price; DDU/DAP (Delivered at Place, sometimes still called Delivered Duty Unpaid) means the buyer pays import duties and taxes separately, after the quoted freight price.
| DDP (Delivered Duty Paid) | DDU / DAP (Delivered at Place) | |
|---|---|---|
| Import duties and taxes | Included in the quoted price | Billed to you separately at destination |
| Destination customs clearance | Handled by the seller or forwarder | Arranged by you, often through a customs broker |
| Price predictability | One number up front | Freight is fixed; duties and clearance fees come later |
| Best for | First-time importers and anyone avoiding customs paperwork | Established importers with their own broker, high-volume shippers |
Why a DDU Quote Can Look Cheaper and Cost More
A DDU quote only shows the freight cost — duties, import taxes, and customs clearance fees at destination are billed separately, often by a customs broker you didn’t choose and may not have a relationship with. This is the single most common source of “surprise” costs in international shipping: the freight quote was accurate, but it was never the full landed cost.
When DDP Makes Sense
- First-time importers who want one predictable number rather than coordinating a customs broker themselves at the destination.
- Shipments where duty calculation is straightforward and can be reliably estimated in advance.
- Anyone who values not dealing with a customs clearance process they’re unfamiliar with, even at a premium over a DDU quote.
When DDU Makes Sense
- Established importers with their own customs broker relationship who can clear shipments more efficiently or cheaply than a forwarder’s DDP markup.
- Businesses that want direct visibility into actual duty costs rather than a bundled estimate.
- High-volume shippers where the DDP convenience premium adds up significantly across many shipments.
What to Ask Before Choosing Either
- For a DDP quote: ask what duty rate was used to calculate the bundled price, and what happens if actual customs valuation comes in higher than estimated — does the forwarder absorb the difference or pass it on?
- For a DDU quote: ask for a realistic duty estimate based on your product’s HS code classification, so you’re not blindsided by the separate bill, and confirm who handles customs clearance at destination.
- Either way: confirm whether the quote is genuinely door-to-door or only port-to-port — this affects both pricing structures independently of the DDP/DDU choice.
Getting a Quote With the Terms Actually Spelled Out
We quote freight with the Incoterm basis stated clearly — DDP or DDU, what’s included, and a realistic duty estimate either way — so you’re choosing based on what actually applies to your shipment. See our DDP door-to-door shipping service for how the bundled option works, or tell us your product and destination for a quote that spells out which terms apply.