Pigeon Worldwide

DDP vs DDU — who pays the duty?

The difference between DDP (Delivered Duty Paid) and DDU/DAP (Delivered at Place, duties unpaid) for courier from India, with pros, cons and when to choose each.

In short: DDU/DAP: receiver pays destination duties and taxes on delivery. DDP: duties are prepaid by the sender, so the receiver pays nothing — best for gifts and customer orders. DDP is available to select countries.

Every international parcel may attract duties and taxes at the destination. The shipping terms decide who pays them.

DDU / DAP — receiver pays

With Delivered Duty Unpaid (DAP in current Incoterms), your parcel is delivered to the door, but the receiver pays any duties, taxes and clearance fees before or at delivery.

  • Good for: low-value parcels, documents, receivers who expect to pay.
  • Risk: receivers may refuse to pay, causing delays or returns.

DDP — sender pays

With Delivered Duty Paid, duties and taxes are settled in advance. Your receiver pays nothing on delivery.

  • Good for: gifts, festival boxes, e-commerce orders, business shipments where the customer experience matters.
  • Note: available to select countries and for eligible goods.

Which should I choose?

DDU / DAPDDP
Who pays dutyReceiverSender
Upfront priceLowerHigher (duty included)
Surprise billsPossibleNone
Best forDocuments, low valueGifts, customer orders

Compare DDP and standard services side by side on our rates page.

Frequently asked questions

What does DDP mean?

Delivered Duty Paid — the sender pays destination duties and taxes upfront so the receiver pays nothing on delivery.

What does DDU mean?

Delivered Duty Unpaid (now usually called DAP) — the parcel is delivered, but the receiver pays any destination duties and taxes.

Is DDP more expensive?

The shipping price includes estimated duties, so it costs more upfront — but there are no surprise bills for your receiver, and delivery is often smoother.

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