One of the most important decisions in any cross-border IT hardware shipment is the choice of Incoterm, the trade term that defines who is responsible for freight, customs clearance, and import duties at each stage of the journey. Yet many technology companies, procurement teams, and system integrators select Incoterms by default rather than by design, and the consequences only become visible when something goes wrong at customs.
At GetWay Global, we structure cross-border IT equipment shipments for clients across 170+ countries. DDP, DDU, and DAP are the three terms we see most often in technology hardware contracts, and the differences between them have a direct impact on compliance risk, cost predictability, and project timelines.
Incoterms are a set of standardised trade terms published by the International Chamber of Commerce (ICC). Each term defines exactly where the seller’s obligations end and the buyer’s begin, covering transport, insurance, export clearance, and import customs. The current version is Incoterms 2020.
DDP – Delivered Duty Paid. The seller handles everything: export, freight, import duties, customs clearance, and delivery to the named place. The buyer receives fully cleared goods with zero customs liability. This is the best structure for most managed IT deployments.
DAP – Delivered at Place (formerly DDU). The seller handles export and freight. The buyer handles import customs and pays duties on arrival. DDU (Delivered Duty Unpaid) was retired in the Incoterms 2010 revision and replaced by DAP, but continues to appear in legacy contracts.
EXW – Ex Works. The seller makes goods available at origin only. The buyer handles everything: export clearance, international freight, import, and all duties. Maximum burden on the buyer. Rarely practical for international IT hardware deployments.
DDP has become the preferred Incoterm for managed IT hardware deployments because it removes the customs burden entirely from the buyer and places it with the party best equipped to manage it: the seller, or in most international deployments, a dedicated Importer of Record provider.
For the buyer, whether a data center operator, enterprise IT team, or system integrator, DDP means:
For the seller or technology vendor, DDP means taking on customs responsibility, which is exactly where a professional IOR provider adds value. We act as the named importer in the destination country, manage all compliance obligations, and deliver the equipment duty-paid to the end site.
DDP does not automatically require an Importer of Record provider. If the seller has a locally registered legal entity in the destination country, it can act as its own importer and discharge all customs obligations directly. In practice, however, most technology vendors, resellers, and system integrators do not have legal entities in every country they ship to.
Under a DDP arrangement with GetWay Global as the IOR provider, the process works as follows:
DDP is not a uniform experience across markets. The complexity of what the IOR must manage on the seller’s behalf varies significantly depending on the destination. Below are the markets where DDP shipments of IT and telecom hardware require the most careful management:
Brazil. ANATEL homologation is mandatory for telecom and networking products before goods can be legally imported or operated. Import declarations must be filed through SISCOMEX by a locally registered entity with a valid CNPJ. Import taxes on electronics are layered and require accurate pre-calculation when pricing DDP shipments.
India. BIS Compulsory Registration Scheme covers a wide range of electronics and IT equipment. An Import Export Code (IEC) issued by the DGFT is required. Telecom equipment requires TRAI compliance. DDP pricing must account for Customs Duty, IGST, and applicable cess charges.
Saudi Arabia. The Communications, Space and Technology Commission (CST, formerly CITC) requires type approval for telecom and radio-frequency equipment before import. SASO certification is required for general electronics via the SABER platform. Only companies incorporated or registered in Saudi Arabia qualify as legal importers under DDP terms.
Vietnam. Electronics require quality certification from the Ministry of Industry and Trade (MOIT) and telecom hardware requires approval from the Ministry of Information and Communications (MIC) before import. A locally licensed IOR is required by law for foreign technology vendors shipping under DDP terms.
UAE / Dubai. CST type approval is required for telecom hardware. Free zone options such as JAFZA and DAFZA provide flexibility for companies staging IT equipment for regional distribution. We maintain warehousing capability in Dubai for companies managing Middle East hardware logistics.
EU markets. The EU single customs union simplifies DDP across member states. CE marking and WEEE compliance are required for IT equipment. Fiscal representation for VAT is required for non-EU sellers in certain member states, and this is included as part of our IOR service.
DDP is the right structure for most IT hardware deployments, but there are scenarios where DAP makes more sense:
DDP is the right structure for most IT hardware deployments, but there are scenarios where DAP makes more sense:
These are the recurring errors we see when technology companies attempt DDP shipments without proper IOR support in place:
GetWay Global provides end-to-end DDP delivery for IT, telecom, data center, and broadcasting equipment across 170+ countries. Our service includes:
To discuss DDP structure and IOR coverage for your next IT hardware deployment, contact our team or visit our IOR and EOR services page for more detail on how we operate across specific markets.
Under DDP (Delivered Duty Paid) the seller, or their IOR provider, handles export, freight, import customs, duties, and taxes, delivering fully cleared goods to the buyer. Under DAP (Delivered at Place), the seller arranges export and freight but the buyer is responsible for import customs clearance, duties, and taxes on arrival.
Functionally yes. DDU (Delivered Duty Unpaid) was retired from the official Incoterms framework in the 2010 revision and replaced by DAP (Delivered at Place). Both terms place import duty responsibility on the buyer. If your contract still says DDU, treat the obligations as equivalent to DAP under Incoterms 2020.
Yes. When you ship under DDP terms to a country where you have no local legal entity, we act as your Importer of Record. We file the customs declaration, pay import duties and taxes, manage any required local certifications, and deliver the goods duty-paid to the end site.
Without a locally registered IOR, there is no legal entity to file the import customs declaration at destination. Goods will be detained at the port. This can result in storage charges, customs penalties, and in some cases forced re-export. DDP is a compliance commitment, not just a pricing adjustment.
Brazil, India, Saudi Arabia, and Vietnam are consistently the most complex. Brazil requires ANATEL homologation for telecom products and filing through a locally registered entity. India requires BIS certification for many electronics categories. Saudi Arabia requires CST type approval for telecom equipment. Vietnam requires MOIT and MIC approvals for electronics and telecom hardware.
In markets where fiscal representation is required for VAT compliance, including some EU member states, it is included as part of our IOR service. We act as both the named importer and the fiscal representative so the seller does not need to register for VAT independently in each country.
