DDP and DDU describe who is responsible for transportation, customs, duties and delivery in an international shipment. Understanding the difference helps brands avoid unexpected charges and delivery delays when shipping products to Canada.
The key differences are transportation, customs clearance, duties and taxes, and who must act when the shipment reaches Canada.
Under Delivered Duty Paid, the seller takes responsibility for delivering the goods to the agreed destination and generally handles import clearance, duties and taxes required under the approved shipment structure.
DDU is older terminology. Under current Incoterms, DAP is generally the closest equivalent. The seller delivers to the agreed place, while the buyer is typically responsible for import clearance, duties and taxes.
The key commercial difference is who is expected to pay Canadian import duties, GST or other applicable charges before the shipment can be released and delivered.
The shipping term does not remove the need for a valid importer structure, accurate customs documentation and properly licensed customs services when required.
DDP can create a simpler delivery experience for the buyer when the seller has an approved importer structure, understands Canadian taxes and duties, and can manage the required customs process.
DAP-style shipping can make sense when the Canadian buyer or distributor is prepared to act on the import side and accept responsibility for clearance, duties and taxes.
DDP usually gives the buyer more cost certainty at delivery. Under DDU / DAP, the buyer may receive a request for duties, taxes or clearance charges before the shipment is released.
Before choosing DDP, confirm who can legally act as importer, which registrations are required and how customs clearance will be handled for the shipment.
TuBoleto can coordinate with properly licensed customs service providers when brokerage or clearance services are required. TuBoleto does not replace the licensed customs broker.
Once the shipment is released in Canada, approved inventory can connect to receiving, warehousing, fulfillment, retail or B2B distribution workflows.
The exact arrangement depends on the contract and approved shipment setup, but these are the practical differences businesses usually need to clarify.
Under both DDP and DAP-style arrangements, the seller generally arranges transportation to the agreed destination.
With DDP, the seller generally takes responsibility for import clearance. Under DAP-style shipping, the buyer generally handles import clearance.
DDP generally places applicable import duties on the seller. Under DAP-style shipping, the buyer generally pays duties required for import.
The approved importer structure and shipping terms determine who is responsible for Canadian import taxes and how those amounts are handled.
The parties must confirm who can act as importer and provide the registrations, records and information required for the Canadian import.
DDP is designed to reduce charges presented to the buyer at delivery. Under DAP-style shipping, import charges may need to be paid before the goods are released.
No. DDU is older terminology. Under current Incoterms, DAP is generally the closest equivalent for shipments where the seller delivers to the agreed place and the buyer handles import clearance, duties and taxes.
Under DDP, the seller generally takes responsibility for import clearance, duties and taxes. Under DAP, the buyer generally handles those import-side responsibilities.
Under a properly structured DDP shipment, the seller generally assumes responsibility for applicable import duties and taxes required to deliver the goods to the agreed destination.
The importer structure depends on the shipment, business model and eligibility. The parties must confirm who can legally act as importer and provide the registrations, records and information required for the import.
No. When licensed customs brokerage or clearance services are required, TuBoleto coordinates the process with properly licensed customs service providers.
It depends on the buyer experience you want, your importer structure, tax and duty responsibilities, and who is prepared to manage customs clearance. DDP can simplify delivery for the buyer, while DAP may be more appropriate when the Canadian buyer or distributor is prepared to handle import charges and clearance.
Tell us what you are shipping, where it is coming from, who the Canadian buyer or importer will be, and whether you want the seller or buyer to manage duties, taxes and customs clearance.
