Hing Shipping
Short answer: if you are selling into Europe without an EU company, without a VAT number, or shipping to Amazon FBA → choose DDP (your forwarder handles customs + taxes). If you are an EU-based business with your own customs broker → DDU/DAP is usually cheaper.
Picking the wrong term can cost you thousands in unexpected duties — or worse, goods stuck in customs racking up demurrage. Here is the full comparison.
| DDP (Delivered Duty Paid) | DDU / DAP (Delivered Duty Unpaid) | |
|---|---|---|
| Import duty + VAT | Shipper / forwarder pays | Consignee pays |
| Customs clearance | Forwarder's EU broker | You / your broker |
| Compliance risk | On the shipper side | On you |
| Final delivery | Included, to door | Included, to door (taxes excluded) |
| Price level | Higher (taxes pre-estimated) | Lower (taxes excluded) |
| Best for | E-commerce sellers, FBA, first-time importers | EU companies, large traders |
Terminology note: DDU was formally replaced by DAP in Incoterms 2010. Most China–Europe trade still says "DDU" out of habit — practically they are the same: seller delivers, buyer clears and pays taxes.
DDP typically runs 5–15% more expensive than DDU, because the forwarder prices in duty prepayment, customs brokerage, and VAT financing. But the premium buys certainty: with DDP you get a locked total price before shipping. With DDU, the "cheaper" headline price often grows afterwards:
DDP transfers customs risk to the forwarder. High-volume DDP forwarders know which product categories get inspected and how to classify them correctly. Under DDU, if customs flags a compliance issue, it's your problem.
DDP usually clears 1–3 days faster — documents are pre-filed and tax pre-paid. DDU waits for the consignee to arrange clearance; if your contact is on holiday, cargo sits (and demurrage starts after free days).
Example: EUR 100,000 of electronics into Germany ≈ EUR 27,000 duty + EUR 19,000 import VAT. Under DDU you front EUR 46,000+; under DDP the forwarder does. For small and mid-size importers, that working-capital difference often decides the term.
Electronics, 8 CBM / 600 kg / EUR 25,000 value, destination Amazon DE2. No VAT number, no EU entity. DDP total EUR 4,800 including duty + VAT + delivery + FBA appointment. Door-to-door 38 days.
Furniture, 35 CBM, monthly imports. Has EORI, own broker files entry at a fixed EUR 90/entry and reclaims VAT. DDU saves ~8% vs the DDP offer on every shipment.
Machinery parts, 12 CBM. Chose DDU to "save money", mis-declared HS codes, goods held 9 days in Rotterdam: EUR 620 storage + broker re-file. The DDP premium would have been EUR 410.
FAQ
I sell on Amazon EU — is DDP mandatory?
Not mandatory, but strongly recommended. Amazon warehouses do not act as importer of record. DDP with a forwarder who pre-registers VAT/EORI is the standard practice.
Can I switch terms later?
Yes, per shipment. Many clients start DDP for the first 2–3 shipments, then switch to DDU once they register their own VAT/EORI in Europe.
Does DDP include customs duties exactly?
A serious forwarder estimates duty + VAT based on HS codes and locks it in the quote. If classification is certain, the price holds. We tell you upfront when an estimate carries risk (e.g. anti-dumping categories).
Send us your cargo details and destination. We'll quote both DDP and DDU side by side.
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