Delivery Duty Unpaid (DDU) and Delivery Duty Paid (DDP) are the two Incoterms ShipHero uses to decide who pays duties and taxes on an international shipment: the buyer or the seller. The one you choose affects your customer's delivery experience and your own shipping costs.
Understanding Delivery Duty Unpaid (DDU)
With DDU, the buyer pays all duties and taxes when the shipment arrives. It's a common shipping method, but shipments often move through customs more slowly, and unexpected charges at delivery can hurt the customer experience.
UPS Worldwide Economy DDU Suspended to the EU
As of June 28, 2026, UPS suspended Worldwide Economy Delivered Duty Unpaid (DDU) service to European Union countries. Shipments sent with this service to an EU destination are returned to the shipper, adding cost and delay.
If you ship UPS Worldwide Economy orders to the EU, switch to Worldwide Economy DDP or an Expedited service. See How to Set Your Incoterms in ShipHero for the steps.
Germany DDU and DAP service limits
Germany restrictions vary by carrier, service, and shipment type. As of October 23, 2026, GlobalPost Economy and Standard DDU services are unavailable for shipments to Germany. UPS Worldwide Economy DDU is also unavailable for Germany; UPS Worldwide Economy DDP and other UPS services are unaffected. Check the current service options with your carrier before creating a label.
For postal shipments, Deutsche Post's notice to postal operators allows eligible non-IOSS items to use DAP through October 31, 2026. From November 1, 2026, those items are expected to use DDP. This transition applies to the postal items covered by the notice, not to every carrier service. See GlobalPost's Germany service update, the UPS Worldwide Economy update, and the UPU notice on Germany's postal transition.
Understanding Delivery Duty Paid (DDP)
With DDP, the seller pays all duties, taxes, and import costs upfront. The buyer receives the order with no surprise fees, which leads to a faster, smoother delivery experience.
The trade-off is that the seller absorbs these costs. Duties are easier to predict and manage for a focused product catalog. For sellers with large or varied catalogs, costs get harder to control as country-level rules change.
Choosing DDU or DDP for B2B and B2C Shipments
Manufacturers and wholesale (B2B) sellers commonly use DDU. Their buyers are used to handling customs and duties, so clearance stays predictable even though the buyer pays at delivery.
Consumer-facing (B2C) sellers often default to DDU too, since it lets the seller avoid absorbing duty costs. The trade-off shows up for the shopper: slower customs clearance and surprise fees at delivery, at a time when shoppers expect fast, low-cost delivery on every order, including cross-border ones. Every country sets its own rules for product values, quantities, and import restrictions, and those rules change often, so B2C customs clearance takes more ongoing attention than B2B.
Knowing the import rules for each country you ship to is essential. DDU tends to work better for high-value shipments. DDP creates a better customer experience but shifts duties and taxes to the seller, a trade-off worth weighing before expanding internationally.
How ShipHero Determines B2B or B2C for EU Customs
Shipments to European Union countries valued at €150 or less need a Business-to-Business (B2B) or Business-to-Consumer (B2C) indicator in the package level customs data. Carriers can delay or return shipments that are missing this indicator, and the return cost falls on the shipper.
ShipHero sets this indicator from the Business Address checkbox on the order detail page. When the checkbox is selected, ShipHero sends the shipment as B2B. When it isn't selected, ShipHero sends the shipment as B2C.
Business address requirements vary by EU country, so a business name on the Ship To address is not required for this indicator. Check the Business Address checkbox to classify the shipment as B2B.
For more information about incoterms, see How to Set Your Incoterms in ShipHero.