Buying from KoreaOct 10, 2026

DDP vs DDU: Who Actually Pays Import Duties on Your Order

DDP means the seller pays US import duty before delivery. DDU or DAP means the carrier bills you. How to tell which one you are buying before you pay.

With DDP (Delivered Duty Paid), the seller pays the import duty and clearance costs, and the price you paid at checkout is the end of it. With DDU (Delivered Duty Unpaid), now officially called DAP, the seller only pays to get the parcel to your country, and the carrier collects the duty and its own fee from you before or at delivery. Since the US ended its $800 duty-free allowance in August 2025, that difference applies to every order from overseas, including small ones.

This guide covers what each term means, who pays what and when, how to tell them apart on an order page, and what to do when a driver or a text message asks you for money.

Where the terms come from

DDP and DAP are Incoterms, a set of trade rules published by the International Chamber of Commerce (ICC). The US International Trade Administration describes Incoterms as internationally recognized rules that define the responsibilities of sellers and buyers, including who pays for and arranges shipping, insurance, documentation and customs clearance. The current edition is Incoterms 2020, which has 11 rules.

DDU is not one of them anymore. The 2010 revision dropped DDU and introduced DAP (Delivered at Place), which covers the same arrangement. Online sellers and carriers kept using "DDU" anyway, so in e-commerce the two words mean the same thing: delivered, duties not paid.

Incoterms were written for business-to-business contracts. When a consumer shop writes "DDP" on a product page, it is using the term loosely, as shorthand for "we pay the import charges." That is fine, as long as the shop spells out what is included.

Who pays what, and when

	DDP (duty paid)	DDU / DAP (duty unpaid)
International shipping	Seller	Seller
US import duty	Seller, before delivery	You
Carrier's clearance or advancement fee	Seller	You
When you pay	Once, at checkout	At checkout, then again before or at delivery
Do you know the full cost before ordering?	Yes	Only if you estimate it yourself
Typical tracking experience	Clears and moves on	May pause at "awaiting payment of duties"
Risk of a refused or returned parcel	Low	Higher, if the bill is unexpected

Under either term, US Customs and Border Protection (CBP) still regards you as the importer. Its guidance for online shoppers says CBP holds the importer liable for the payment of duty, not the seller. DDP does not change the law. It is a commitment by the seller to pay on your behalf.

Why this matters more since 2025

Before August 29, 2025, most consumer orders under $800 entered the US without duty, so DDP and DDU produced the same result for the buyer. Now CBP's FAQ says shipments valued at $800 or less must go through formal or informal entry and that all applicable duties, taxes and fees must be paid. Somebody pays on every parcel. The only question is who, and whether you were told. The background is in our guide to the end of the $800 rule.

How DDP works in practice

There are two common routes from Korea.

Express courier, duties billed to the shipper. The seller's FedEx, UPS or DHL account is set so that duties and taxes go to the sender. DHL's FAQ describes it: if the shipper pre-selects to pay all charges including duties and taxes, DHL pays them and charges them back to the shipper, and the receiver pays nothing.

Korea Post, duty collected at the counter. Since September 22, 2025, Korea Post has charged the sender the applicable US tariff when the parcel is accepted, working with a CBP-approved customs broker, so the item clears as delivered duty paid. Korea JoongAng Daily reported that this covers EMS, international parcels and K-Packet. In other words, postal mail from Korea to the US is prepaid by design. Whether the seller absorbed that cost or added it to your total is a pricing question, not a delivery risk.

How DDU works in practice

The seller ships by courier with duties billed to the receiver. When the parcel reaches the US, the courier files the entry, pays CBP so the parcel can keep moving, and then asks you to pay it back. DHL's FAQ says it collects from the receiver prior to or on delivery and only releases the goods on full repayment.

The bill has two parts: the duty, and the courier's fee for advancing it. CBP notes that the charges people call customs fees are often fees for the broker's service, and that these can add up to more than a buyer expected. On a small order, the courier's minimum fee can exceed the duty itself.

How to tell which one you are buying

Look in these places before you pay:

The product or cart page. Wording such as "duties and taxes included," "DDP" or "no additional charges on delivery" signals duty paid.
The shipping policy page. Many shops state their terms only here. Search the page for "duty," "customs" and "import."
The checkout summary. A separate line for duties or import fees, shown as a final amount, means it is being collected now.
The fine print. "Buyer is responsible for any customs fees" or "import charges are not included in the item price" means DDU, no matter what the banner at the top says.

Phrases that do not answer the question:

"Free shipping" or "shipping included." CBP states plainly that a purchase price that includes shipping and handling does not include duty.
"Customs friendly" or "we mark as gift." This is an offer to misdeclare the parcel. CBP's FAQ says the gift exemption does not cover purchased items. A false declaration can lead to a hold, a return or a seizure.
"Duties may apply." This tells you nothing about who pays.

If the page is unclear, ask directly: "Are US import duties and the carrier's clearance fees included in my total, and will anything be collected on delivery?" Keep the answer. More questions worth asking are listed in how to buy from Korea without surprise customs fees.

When the carrier asks you for money

First, confirm it is real

Scammers send fake "your package is held, pay the customs fee" messages to people who are not expecting anything, and to people who are. Do not tap the link. Open the carrier's website or app yourself, enter the tracking number from your order confirmation, and see whether a balance is shown there.

If the charge is real and the order was DDU

Pay through the carrier's official channel. DHL, for example, accepts payment online, through its delivery management service, or at a service point. Paying promptly matters, because a parcel waiting on payment is not moving and storage time is limited.

If the charge is real and you were promised DDP

Send the seller the carrier's invoice and the wording from their listing. A legitimate seller will either get the bill redirected to their account or refund you the amount. Paying first and claiming it back is often the fastest way to get the parcel, but get the seller's agreement in writing before you do.

If you want to refuse

You can decline a parcel, but be clear about the consequences. The goods go back to the sender or are abandoned, return freight may be charged to the seller, and your refund then depends on the seller's policy. Refusing is not an automatic route to getting your money back.

Which should you choose?

For personal purchases, DDP is almost always the better deal even when the sticker price is higher, because the carrier's fee on a duty-unpaid parcel is avoided and the total is known in advance. DDU makes sense mainly for experienced buyers who know the duty rate for their product and are comfortable handling the carrier's paperwork.

The K Drop ships from Korea to the US with tracking, and there are no additional duties or fees to pay when your order arrives, because they are handled before shipping. You can browse the current cards with that in mind.

This article is general information, not legal or tax advice. For a specific shipment, check with CBP or a licensed customs broker.