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DDU | Incoterms® 2020 Explained for Beginners | 2023 | Delivered Duty Unpaid
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Delivered Duty Unpaid (DDU)?
Delivered Duty Unpaid (DDU) is an old international trade term that means the seller pays all transportation costs and assumes all hazards during transport.
The customer pays import fees and transit costs after the products arrive. DDP means the seller pays tariffs, import clearance, and taxes.
ESSENTIALS
Delivered Duty Unpaid (DDU) means the vendor is responsible for safe delivery and the buyer pays import charges.
DDP means the seller pays tariffs, import clearance, and taxes.
The International Chamber of Commerce has officially replaced DDU with Delivered-at-Place, however transportation contracts still use DDU (DAP).
DDU shipping allows buyers additional shipping control.
DDU shipping lets sellers "hands-off" the destination country's shipping restrictions.
DDU buyers worry about unexpected tariffs and taxes when their cargo arrives.
1:06
Duty Unpaid (DDU)
Unpaid Duty (DDU)
The International Chamber of Commerce (ICC) was founded after World War I to promote European prosperity by creating international trade standards. Incoterms were published by this group in 1936.
1
The ICC can amend Incoterms, which specify who pays for international transactions. The ICC standardizes words to ease international shipping's legal and logistical complexities for enterprises.
The site sells 2020 Incoterms revision.
The most recent (2010) version of the International Chamber of Commerce's Incoterms did not include Delivered Duty Unpaid (DDU), which is now known as Delivered-at-Place (DAP).
2
International trade still uses DDU. Delivery location follows the term on paper (e.g., "DDU: Port of Los Angeles").
DPU Shipping is the third word used to distinguish shipping methods. The seller unloads the products under DPU.
Unpaid duties (DDU)
DDU requires the seller to get licenses and handle other export processes, as well as pay for transit country licenses and invoices.
The seller bears all risk until delivery, although it is not required to insure the items.
The buyer must get import licenses and pay taxes, tariffs, and inspection fees. Buyers assume all risks. The customer bears all transportation fees and hazards after receiving the items.
versus. DDU
Responsibilities
Buyer Duties
Delivers the items and the paperwork proving ownership.
Buys delivered items.
Handles export paperwork.
Responsible for import clearance paperwork after shipment arrives.
The customer assumes all risk after delivery to the target country.
After delivery alongside the ship, the buyer is liable for any loss or damage.
Seller covers delivery, loading, labor, and transportation to destination country.
Buyer pays import tariffs, taxes, customs fees, unloading, and delivery to their warehouses.
DDU versus DDP (DDP)
Delivered duty unpaid (DDU) indicates the customer must pay the destination country's customs, tariffs, and taxes. Before customs releases the shipment, they must be paid.
Delivered duty paid (DDP) indicates the shipper pays all customs charges, tariffs, and taxes to send the product to the destination country.
Delivered Duty Unpaid Benefits and Drawbacks (DDU)
DDU shipping allows buyers additional shipping control. Global buyers need more control to maintain inventory flow.
DDU shipping makes tracking and cost control easier than DDP shipping. Buyers naturally know their country's shipping customs.
DDU shipping lets sellers "hands-off" the destination country's shipping restrictions. The supplier merely delivers the cargo, and the buyer handles any legal issues.
DDU shipping has drawbacks. Buyers worry most about unexpected tariffs and taxes when their package arrives. That obviously hurts buyers. Shippers may lose money if unhappy consumers refuse to pay for delivery.
DDU Shipping FAQ
DDU or DDP?
As discussed, each shipping method has pros and cons. The buyer or receiver's shipping experience is what matters.
DDU is a suitable alternative if the receiver values shipping control and doesn't mind legal issues or unexpected charges. DDP is best for buyers that seek a simple transaction without hidden fees.
Who Ships DDU?
The seller is responsible for DDU shipping to the target country. The seller is responsible till offloading.
The buyer pays and risks unloading.
Is DAP DDU?
DAP replaced DDU in 2010, thus they're the same.
Delivered Duty Unpaid (DDU) is an old international trade term that means the seller pays all transportation costs and assumes all hazards during transport.
The customer pays import fees and transit costs after the products arrive. DDP means the seller pays tariffs, import clearance, and taxes.
ESSENTIALS
Delivered Duty Unpaid (DDU) means the vendor is responsible for safe delivery and the buyer pays import charges.
DDP means the seller pays tariffs, import clearance, and taxes.
The International Chamber of Commerce has officially replaced DDU with Delivered-at-Place, however transportation contracts still use DDU (DAP).
DDU shipping allows buyers additional shipping control.
DDU shipping lets sellers "hands-off" the destination country's shipping restrictions.
DDU buyers worry about unexpected tariffs and taxes when their cargo arrives.
1:06
Duty Unpaid (DDU)
Unpaid Duty (DDU)
The International Chamber of Commerce (ICC) was founded after World War I to promote European prosperity by creating international trade standards. Incoterms were published by this group in 1936.
1
The ICC can amend Incoterms, which specify who pays for international transactions. The ICC standardizes words to ease international shipping's legal and logistical complexities for enterprises.
The site sells 2020 Incoterms revision.
The most recent (2010) version of the International Chamber of Commerce's Incoterms did not include Delivered Duty Unpaid (DDU), which is now known as Delivered-at-Place (DAP).
2
International trade still uses DDU. Delivery location follows the term on paper (e.g., "DDU: Port of Los Angeles").
DPU Shipping is the third word used to distinguish shipping methods. The seller unloads the products under DPU.
Unpaid duties (DDU)
DDU requires the seller to get licenses and handle other export processes, as well as pay for transit country licenses and invoices.
The seller bears all risk until delivery, although it is not required to insure the items.
The buyer must get import licenses and pay taxes, tariffs, and inspection fees. Buyers assume all risks. The customer bears all transportation fees and hazards after receiving the items.
versus. DDU
Responsibilities
Buyer Duties
Delivers the items and the paperwork proving ownership.
Buys delivered items.
Handles export paperwork.
Responsible for import clearance paperwork after shipment arrives.
The customer assumes all risk after delivery to the target country.
After delivery alongside the ship, the buyer is liable for any loss or damage.
Seller covers delivery, loading, labor, and transportation to destination country.
Buyer pays import tariffs, taxes, customs fees, unloading, and delivery to their warehouses.
DDU versus DDP (DDP)
Delivered duty unpaid (DDU) indicates the customer must pay the destination country's customs, tariffs, and taxes. Before customs releases the shipment, they must be paid.
Delivered duty paid (DDP) indicates the shipper pays all customs charges, tariffs, and taxes to send the product to the destination country.
Delivered Duty Unpaid Benefits and Drawbacks (DDU)
DDU shipping allows buyers additional shipping control. Global buyers need more control to maintain inventory flow.
DDU shipping makes tracking and cost control easier than DDP shipping. Buyers naturally know their country's shipping customs.
DDU shipping lets sellers "hands-off" the destination country's shipping restrictions. The supplier merely delivers the cargo, and the buyer handles any legal issues.
DDU shipping has drawbacks. Buyers worry most about unexpected tariffs and taxes when their package arrives. That obviously hurts buyers. Shippers may lose money if unhappy consumers refuse to pay for delivery.
DDU Shipping FAQ
DDU or DDP?
As discussed, each shipping method has pros and cons. The buyer or receiver's shipping experience is what matters.
DDU is a suitable alternative if the receiver values shipping control and doesn't mind legal issues or unexpected charges. DDP is best for buyers that seek a simple transaction without hidden fees.
Who Ships DDU?
The seller is responsible for DDU shipping to the target country. The seller is responsible till offloading.
The buyer pays and risks unloading.
Is DAP DDU?
DAP replaced DDU in 2010, thus they're the same.