Analysis of Tariff Bearers Between DDU and DDP

Who Pays the DDU and DDP Duties?

In international trade, the issue of who bears the tariff burden has always been a key concern for both buyers and sellers. This is particularly important when using two delivery methods DDP Delivered Duty Paid and DDU Delivered Duty Unpaid. To better understand this issue, we first need to clarify the specific meanings of these two delivery methods.

DDP means that the seller is responsible for transporting the goods to the buyer's designated destination and bearing all transportation costs and risks, including handling import clearance procedures and paying import duties and other taxes. This implies that under the DDP terms, the seller must ensure that the goods can pass through the customs inspection of the destination country smoothly and pay the corresponding duties. On the other hand, DDU is the opposite; the seller only needs to deliver the goods to the buyer's designated destination but does not handle import clearance procedures or pay related taxes. In this case, the buyer must bear the import duties and related costs on their own.

Theoretically, under the DDP condition, the tariff should be paid by the seller; while under the DDU condition, it is usually the buyer who pays the tariff. However, in actual operation, due to differences in contract terms, market practices, and specific transaction backgrounds, the actual bearer of the tariff may change.

For example, according to INCOTERMS®2025 regulations, under the DDP condition, the seller must complete the export declaration of the goods and pay all export taxes; at the same time, they also need to be responsible for handling the procedures required for importing the goods into the final destination and paying import duties and other fees. This indicates that under the DDP condition, the seller assumes full responsibility, including tariffs. However, in some special cases, such as when the buyer and seller agree to adjust the allocation of obligations, it is possible that the seller only advances the tariff and then seeks reimbursement from the buyer later.

On the other hand, under the DDU condition, although the buyer is generally considered responsible for paying the tariff, there may actually be exceptions. For instance, when the buyer fails to provide necessary documents or information in time, causing delays in customs clearance, the seller may choose to advance the tariff to expedite the process out of consideration for protecting their own interests. Although this behavior seems to violate convention, it is reasonable and common in certain situations.

It is worth noting that with the rapid development of cross-border e-commerce, more and more companies are beginning to enter the international e-commerce field. Against this backdrop, how to properly handle the tariff issues in cross-border logistics has become more complex. For example, Amazon and other e-commerce platforms have introduced FBA service models, where sellers often choose DDP as the main delivery method. In this case, even if the contract stipulates DDP, it is possible for the platform to collect the tariff on behalf of the seller and then transfer it later.

In summary, whether it is the tariff-bearing issue under the DDP or DDU conditions depends on specific contract agreements, trading practices, and actual circumstances. When signing international trade contracts, both parties should fully communicate and clearly define their respective responsibilities to avoid unnecessary disputes later. At the same time, for enterprises involved in cross-border e-commerce, it is also important to familiarize themselves with the laws and regulations of the target markets to ensure compliance. Through reasonable planning and management, potential risks can be effectively avoided, achieving a win-win situation.