In short
- DDU/DAP: the seller delivers, the buyer imports — duties and the declaration belong to the buyer.
- DDP: the seller delivers duty paid — the seller side must actually be the importer of record in Indonesia, which is the hard part.
- On this lane, some "DDP all-in" offers are really undername imports: clearance under a third party licence, with your tax record and audit exposure outside your control.
- The term you choose should follow who legitimately can and should hold the import record — not whoever quotes the roundest number.
The terms in one table
Incoterms allocate tasks and risk between seller and buyer. The rows below are the ones that decide outcomes on this lane.
| Aspect | DDU / DAP | DDP |
|---|---|---|
| Main carriage | Seller arranges | Seller arranges |
| Import customs clearance | Buyer side (or its PPJK) | Seller side — must hold or control an import identity |
| Import duty, PPN, PPh 22 | Buyer pays, at assessed values | Seller pays — inside the selling price |
| Importer of record / tax record | Buyer (own NPWP/API) or named undername party | Seller side or its proxy |
| Risk of customs queries | Buyer, who controls the file | Formally seller — practically shared, since goods are yours |
| Typical use on this lane | Regular importers with API/NIB | Occasional buyers, or sellers hiding undername structures |
Why DDP tempts buyers
The pitch is real convenience, and for some situations it is honest convenience.
- One number, one invoice, no Indonesian tax registration needed on the buyer side.
- No PPJK engagement, no duty payment process, no CEISA visibility — attractive for a first container.
- For genuinely small, low-value, non-restricted cargo it can be a reasonable tool — with the right structure and in writing.
The DDP trap on this lane: undername in disguise
A genuine DDP into Indonesia requires the seller to be or control a licensed importer. Many offers solve that problem quietly.
- What actually happens: the cargo is cleared under some third party NPWP/API — a "general importer" you have never met and never agreed to.
- Your goods, someone else declaration: the PIB, the value declared and the HS used are outside your control, but the cargo is legally theirs until handed over.
- Consequences compound: no VAT-creditable tax record for your company, no clean audit trail, and if the proxy importer has problems, your cargo sits inside them. See Undername Import Risks.
- The tell: a DDP offer that cannot or will not name the importer of record and show who files the PIB is not offering DDP. It is offering you a stranger.
Our position: We file under your NPWP and API whenever you hold them, and we do undername only deliberately, with the trade-offs in writing and the tax consequences explained before the container sails.
Worked comparison on the same cargo
Illustrative example — 8 CBM, CIF USD 12,000, BM 10%, PPN effective ~11%, PPh 22 2.5% (API+NPWP). Figures illustrative; subject to the prevailing quote and assessment.
| Line | DDU (buyer imports, own API) | Suspicious "DDP all-in" |
|---|---|---|
| Freight + handling to door | 1,250 | 1,650 |
| Duty BM 10% of 12,000 | 1,200 (paid by buyer) | inside the lump |
| PPN ~11% of (CIF+BM) | 1,452 (creditable input VAT) | inside the lump, no credit trail |
| PPh 22 2.5% | 330 | unknown whose ID |
| Total visible cost | 4,232 — of which 2,982 is real tax you owe anyway | 1,650 — and the tax record is a stranger |
Read the comparison correctly: The DDP lump looks smaller because it hides duties and, more importantly, hides whose declaration they were computed on. The DDU column is bigger and honest — and its PPN is recoverable input tax for a registered company.
How to choose
The right term follows the import identity, and the import identity follows your business.
- You import regularly or resell: take DDU/DAP, register NPWP/NIB/API, keep the tax record and VAT trail yours. See Import Licences.
- One-off, low-restriction cargo: undername through a licensed, transparent PPJK can be legitimate — understand it is not your record. See NPWP, NIB & API.
- Seller-offered DDP: acceptable only when the filing entity is named, licensed and documented in the contract.
- Any offer that dodges the importer-of-record question: treat the whole quote as unverified. See Comparing Quotes.
Related pages
This page summarizes field practice and publicly available Indonesian import rules for general business reference only—it is not legal, customs, or pricing advice. Customs provisions, tariff rates, and licensing requirements keep changing, so the rules in force at the time and the official processing result always prevail. Wuhan Freedom International Logistics Co., Ltd. · Licensed PPJK in Indonesia · Jakarta / Semarang / Wuhan.