DDP or DAP: who should pay the border charges on your orders
Every order that crosses the border is shipped on one of two terms: the customer pays on arrival, or the store pays up front. How each works, what DDU really means, and how to choose.
By the Othermile team
Every order that crosses the border raises one question before it ships: who pays the duty, tax and fees, the store or the customer? The answer is set by the delivery term, and online stores mostly choose between two.
DAP: the customer pays on arrival
DAP (delivered at place) means the seller pays to get the parcel to the customer, and the customer pays any import duty, tax and clearance fee when it arrives. It is the default for most online orders across the border, because the store does nothing extra.
The cost lands on the customer at the worst moment: after they have paid, on the doorstep, often with a carrier fee on top. Some refuse the parcel. The store then pays for the return, loses the sale, and has still paid the original shipping.
DDP: the store pays up front
DDP (delivered duty paid) means the seller pays everything, including the import charges. The carrier bills the store, and the customer receives the parcel with nothing to pay.
DDP costs the store on every order, so the price or the shipping rate has to cover it. In return, customers get the experience they expect from a domestic order, and refused parcels mostly disappear.
What about DDU
DDU (delivered duty unpaid) left the official Incoterms rules in 2010, but carriers and platforms still use the name. It means the same thing as DAP: the customer pays on arrival.
How to choose
| DAP | DDP | |
|---|---|---|
| Who pays import charges | The customer, at the door | The store, through the carrier |
| Price at checkout | Lower | Higher, or the store absorbs it |
| Surprise for the customer | Possible | None |
| Refused parcels | More likely | Rare |
| Work for the store | None | A carrier service or account that supports DDP |
A few rules of thumb:
- If most orders fall under the destination's low value limits, DAP is usually fine, because there is little or nothing to pay.
- If orders are often above those limits, or your customers are not used to buying from abroad, DDP usually pays for itself in fewer refusals.
- You can mix them: DDP for a destination where charges are common, DAP where they are rare.
Duties included shipping
A middle path is a duties included shipping rate. The checkout offers a rate that already contains the expected border charges, and the store pays them. Othermile can price these rates from your own products and checks each order as DDP when the customer chose one.
Know the number first
Whichever term you use, the decision is easier with a number. The free checker shows what a parcel will owe, and what your Canadian customers pay at the door explains where the number comes from.
This guide explains public rules in plain language for general information. It is not customs, tax or legal advice; the exact tariff code, your paperwork and the carrier decide the final amount.
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