The two trade terms DDP and DDU are often used in the import and export of goods, and many importers and exporters do not have a deep understanding of these trade terms, so they often encounter some inconsistencies in the process of importing and exporting goods. Necessary trouble, then, what are DDP and DDU, and what are the differences between these two trade terms? Today, the editor will give you a detailed introduction.

What is DDU?

DDU means “Delivered Duty Unpaid”, which is “delivered duty unpaid (designated destination)”. This trade term refers to the delivery of goods by exporters and importers somewhere in the importing country in the actual working process, in which the exporter must bear all the costs and risks of delivering the goods to the designated place, as well as handling Costs and risks of customs procedures. However, it should be noted that customs duties, taxes and other official fees that need to be paid when importing goods are not included here. Importers need to deal with the additional costs and risks caused by not being able to handle the import customs clearance process for the goods in a timely manner.

Generally speaking, the details of the costs involved in DDU are quite complicated. If this trade term is used, the importer must ask the other party to leave a written text and stamp it when confirming the price with the freight forwarder, so as to avoid the occurrence of Later disputes.

What is DDP?

DDP means “Delivered Duty Paid”, which means “delivery after duty payment (designated destination)”. This delivery method means that after the exporter completes the import customs clearance procedures at the destination designated by both importers and exporters, the Deliver the goods to the importer.

Under this trade term, the exporter needs to bear all the risks in the process of delivering the goods to the designated destination, and also needs to go through the customs clearance procedures at the destination port, and pay taxes, handling fees and other fees. It can be said that under this trade term, the seller has the greatest responsibility. This term should still be used with caution if the seller cannot directly or indirectly obtain an import license.

What is the difference between DDU and DDP?

The biggest difference between DDU and DDP mainly lies in the question of who will bear the risks and expenses during the import and customs clearance process of the goods at the destination port. If the exporter has the ability to complete the import declaration, then DDP can be selected. If the exporter is not able to handle the relevant matters, or is unwilling to handle the import formalities, bear the risks and costs, then the DDU term should be used.

The above are some basic definitions and differences between DDU and DDP. In the actual work process, exporters must choose appropriate trade terms according to their actual work needs, so as to ensure their work. completed normally.

How to calculate DUU and DDP fees:

The amount of Fob. Plus: 1. All local charges at the export port 2. The sea freight (whether positive or negative) is the amount of cif. If you want ddu: plus the local charge of the destination port If you want ddp: plus the destination customs duties in port

The difference between DAP and DDU:

DAP (Delivered at Place) destination delivery conditions (fill in the specified destination) it is a new term of the 2010 general rules, DDU is the term of the 2000 general rules, there is no DDU in 2010. The terms of DAP are as follows: Delivery at destination This term applies to one or more of any modes of transport, and refers to the delivery of goods ready to be unloaded on the arriving means of transport at the buyer’s disposal at the specified destination. The seller delivers, and the seller bears all the risks of the goods being shipped to the designated place. It is advisable for the parties to clearly state the location within the agreed destination, as the risk to that location rests with the seller.

DDPFORWORLD-Professional freight forwarder in China

DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. We do DDP shipping since 2015 by handling home décor, Pet products, battery, power banks, DG cargo, general cargo and Amazon FBA forwarding service. We make your shipping easier and faster by Sea, Air, Express, Truck or Railway. If you have any questions or needs about freight forwarders, please feel free to contact us, we will serve you wholeheartedly.