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DDP vs DDU: Which to Choose for India Exports

A comprehensive guide to understanding Incoterms for cross-border e-commerce and B2B transactions

Updated for 2025 regulations

What is DDP?

  • Delivered Duty Paid: shipper/seller pays duties & taxes up front
  • Recipient pays nothing at delivery
  • Great for B2C and frictionless CX

What is DDU/DAP?

  • Duties Unpaid: recipient pays import charges on arrival
  • Lower upfront cost but more failed deliveries/returns
  • Common in B2B; risky for D2C

When to choose DDP

  • B2C D2C orders under de‑minimis (e.g., US USD 800 Section 321)
  • Customer experience is a priority
  • You want predictable landed costs

When to choose DDU/DAP

  • High‑value B2B with established brokers
  • Recipient wants control of clearance
  • Incoterms agreed in contract

Operational implications

  • Invoices must match HS/valuation rules
  • Ensure returns flow and duty reclaim options
  • Choose lanes with pre‑payment and electronic filing (e.g., Type 86)

Need Help Choosing the Right Option?

Our logistics experts can help you determine whether DDP or DDU is best for your specific use case.

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