On inquiry process, sometimes customer will ask for DDU or DDP, do you know what DDU、DDP mean? What's the difference between them?
DDU Trade Terminology Interpretation
DDU: duty-paid delivery. It means that the seller delivers the goods to the buyer for disposal at the designated destination, does not go through the import formalities, and does not unload the goods from the means of transport for delivery, that is, completes the delivery.
Application of DDU trade terms:
DDU incoterm applies to non-stop transport, DES or DEQ terms should be used when goods are delivered on board or at the port of destination.
DDU costs who bear:
the seller shall bear all risks and costs of transporting the goods to the designated destination, excluding any "taxes and fees" due for import in the country of destination when customs formalities are required (including liability and risks for handling customs formalities, and payment of handling fees, duties, taxes and other fees). The buyer must bear this "tax" and the costs and risks arising from its failure to import the goods in time for customs clearance.
Note: If both parties wish the seller to go through the customs formalities and bear the costs and risks arising therefrom, as well as one such fee payable at the time of import of the goods, it should be clearly stated in the sales contract.
DDP Trade Terminology Interpretation
DDP: after tax delivery. means that the seller at the designated destination, complete the import customs clearance procedures, the delivery of goods not yet unloaded on the means of delivery to the buyer, complete the delivery.
Application of DDP trade terms:
he term applies to non-stop transportation, but DAP term should be used when the goods are delivered on board or at the port of destination.
DDP costs who bear:
the seller must bear all the risks and costs of shipping the goods to the designated destination, including any "taxes and fees" that should be paid at the destination when customs formalities are required (including the responsibilities and risks of handling customs formalities, and the payment of handling fees, duties, taxes and other fees).
The difference between DDP and DDU:
The biggest difference between DDP and DDU lies in the question of who bears the risks and costs of goods in the process of import clearance at the port of destination. if the exporter has the ability to complete the import declaration, then it can choose DDP, if the exporter has no ability to handle the relevant matters, or is unwilling to go through the import formalities, bear the risks and expenses, then the DDU term should be used.