So, who picks up those costs?

That’s the key difference between DDP and DDU. These delivery terms determine how responsibility is divided between the seller and buyer, particularly when it comes to customs clearance and import charges. Understanding them before your goods are shipped can help you avoid unwelcome costs when they land in South Africa.

One important point before we unpack the details: DDU is no longer an official Incoterms® rule. The International Chamber of Commerce (ICC) replaced it with DAP (Delivered at Place) in 2010. Still, many businesses and suppliers use “DDU” informally to describe shipments where the buyer pays the import duties and taxes.

Your Shipment Has Arrived. Now Who Pays? 

DDP stands for Delivered Duty Paid. Under this arrangement, the seller is responsible for transporting the goods to the named destination, completing import clearance and paying the applicable duties and taxes. According to the ICC, DDP places the highest level of responsibility on the seller.

DDU traditionally meant Delivered Duty Unpaid. Under this arrangement, the seller delivered the goods to the destination, but the buyer handled import clearance and paid the related duties and taxes.

Although DDU was removed from the Incoterms® rules in 2010, the term is still widely recognised. Today, DAP is generally the correct term for an arrangement in which the seller delivers the goods to an agreed destination and the buyer manages import clearance and import charges.

• Transporting the goods to the agreed destination

• Completing export and import customs formalities

• Paying applicable import duties

• Paying applicable import taxes

• Covering other costs allocated to the seller under the agreed Incoterm

For a South African buyer, this can make the total delivered cost easier to understand upfront. Rather than receiving a separate customs bill when the shipment arrives, the buyer agrees on a price that already accounts for the seller’s import responsibilities.

That convenience comes with an important condition: the seller must be able to meet South Africa’s customs, tax and regulatory requirements.

Before agreeing to DDP, confirm that the seller can legally and practically manage the import process. They should also be able to provide the correct commercial invoice, customs information and any permits or supporting documents required for the goods entering South Africa.

If they can’t, a DDP arrangement may cause delays rather than prevent them.

DDU or DAP: The Buyer Takes Care of Import Charges 

Under a traditional DDU arrangement, the seller transports the goods to the agreed destination, but the buyer takes responsibility for import clearance, duties and taxes.

In simple terms, who pays customs duty under DDU? Usually, the buyer.

For goods imported into South Africa, the amount payable can depend on several factors, including the customs value, tariff classification, country of origin and applicable duty rate. The South African Revenue Service (SARS) also collects import VAT, generally at a rate of 15%.

This means a lower supplier price under a DDU- or DAP-style arrangement does not necessarily translate into a lower final cost. Once the goods arrive, the buyer may still need to pay duties, import VAT and other applicable destination charges before the shipment can be released.

Those costs should be calculated as early as possible. Otherwise, a deal that looked good on paper can become expensive by the time it reaches your door.

The exact responsibilities should always be set out in the sales contract, together with the named destination and the specific Incoterms® rule being used.

This matters because customs charges are not based on the delivery term alone. SARS uses factors such as tariff classification and customs value to determine the duty and VAT payable.

It’s also worth remembering that South African customs authorities determine import duties and taxes, not carriers such as DHL. A logistics provider may calculate, collect or facilitate payment of those charges, but it does not set the rates.

Which Option Is Better for Your Business? 

There’s no single right answer. The better option depends on how your business wants to manage cost, control and customs responsibilities.

DDP may suit businesses that want a clearer delivered price and would prefer the seller to handle the import process. It can reduce the buyer’s administrative load, provided the seller is properly equipped to act under DDP in South Africa.

A DAP-style arrangement may suit experienced importers that already understand South African customs requirements. It gives the buyer more control over clearance, tariff classification and the payment of duties and taxes.

The cheapest supplier quote isn’t always the cheapest option overall. When comparing offers, work out the total landed cost rather than focusing only on the product price. This should include transport, customs duties, import VAT and any other charges required to get the shipment to its final destination.

That calculation gives you a far more useful picture of what the goods will actually cost your business.

For DHL Express shipments into South Africa, customs clearance is managed as part of the service. Duties, taxes and destination charges are handled separately and may be payable by either the sender or recipient, depending on the agreed shipping terms. Where applicable, DHL can also facilitate the payment of duties and taxes.

With MyDHL+, businesses can prepare shipments, create documentation and manage international deliveries from one platform. DHL Express also offers options for handling duties and taxes according to the terms agreed between the buyer and seller.

If your business imports or exports regularly, consider opening a DHL Express Business Account. You’ll gain access to shipping tools and services that can make cross-border deliveries simpler to manage, from dispatch through to customs clearance and final delivery.

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