Is DDU still a valid Incoterm?

No. DDU was removed from the official Incoterms set in 2010 and replaced by DAP (Delivered At Place). It is still used informally, but new contracts should use DAP and reference Incoterms 2020.

Who pays customs duties under DDU?

The buyer. 'Duty unpaid' means the seller has not paid import duties or VAT, so the buyer is responsible for import clearance and for paying those charges at the border.

What is the difference between DDU and DDP?

Under DDU (now DAP) the buyer pays import duty and VAT; under DDP the seller prepays them. DDP gives the customer a parcel with nothing more to pay, while DDU/DAP can leave the customer with a surprise customs bill.

Glossary

DDU (Delivered Duty Unpaid)

Q: What is the difference between DDU and DAP?

There is effectively no practical difference — DAP replaced DDU. Under both, the seller delivers to the destination ready for unloading and the buyer pays import customs clearance, duty and import VAT.

Delivered Duty Unpaid · DDU Incoterm

DDU (Delivered Duty Unpaid) is a legacy Incoterm under which the seller delivers goods to a named destination and bears transport cost and risk, but the buyer is responsible for import customs clearance and for paying import duties and import VAT. DDU was officially removed in Incoterms 2010 and replaced by DAP, though the term is still widely used informally.

Last updated: June 2026

Key facts

DDU was retired in Incoterms 2010 and replaced by DAP (Delivered At Place) — they mean essentially the same thing.
Under DDU the seller delivers to the destination at its own cost and risk, but 'duty unpaid' means the buyer pays import duties and VAT.
The buyer handles import customs clearance and bears any charges that arise at the border.
You will still see DDU used by carriers and in e-commerce, but for new contracts the correct current term is DAP.

What DDU meant and why it was replaced

DDU stands for Delivered Duty Unpaid. Under the rule, the seller arranged and paid for transport to the named destination and carried the risk of loss or damage until the goods arrived there. The phrase 'duty unpaid' is the important part: it signals that the seller did not pay import duties or import VAT. Those charges, along with import customs clearance, fell to the buyer.

In Incoterms 2010 the ICC streamlined the old D-family of rules (which included DAF, DES, DEQ and DDU) and replaced them. DDU was superseded by DAP (Delivered At Place). The two are functionally equivalent: in both, the seller delivers to the destination ready for unloading and the buyer pays import duties and VAT. So when someone uses 'DDU' today, they almost always mean what is now formally called DAP.

Because DDU is no longer part of the official Incoterms set, using it in a contract is risky — there is no current ICC definition to fall back on if a dispute arises. Best practice is to write DAP and reference Incoterms 2020 instead.

DDU versus DDP in everyday e-commerce

The DDU/DDP distinction is one of the most important choices in cross-border parcel shipping, and carriers still label services this way. 'DDU' (now DAP) means the recipient pays duties and import VAT — the courier collects these before or on delivery, which can mean an unexpected bill for your customer. 'DDP' means you, the seller, have prepaid those charges, so the customer receives the parcel with nothing more to pay.

For marketplace sellers this is a conversion and satisfaction issue. Shipping DDU/DAP is cheaper and simpler for you, but customers who get hit with a surprise customs invoice often refuse the parcel or leave negative feedback. Shipping DDP costs more and adds compliance work, but delivers a clean 'no extra charges' experience.

Example

A carrier quote that says 'shipped DDU' to a customer in Norway means the Norwegian customer will be asked to pay Norwegian import VAT and any duty before the parcel is released — exactly the same outcome as a modern 'DAP Oslo' shipment. If the seller wanted to prepay those charges so the customer pays nothing extra, they would ship DDP instead.

Why it matters for marketplace sellers

If a supplier or carrier offers you DDU terms, read it as DAP: you (or your customer) will be the one paying import duty and VAT at the border.
For new supplier and logistics contracts, write DAP rather than DDU — DDU has no current ICC definition and can cause disputes.
Shipping customer orders DDU/DAP is cheaper but exposes buyers to surprise customs charges, a common cause of refused deliveries and bad reviews.
If you want a frictionless customer experience with no charges on delivery, choose DDP and prepay duty and import VAT yourself.