There is a lot of confusion going on in understating the difference between DDU (Delivered Duty Unpaid) and DDP (Delivered Duty Paid). The meaning of the DDU term is also called ‘Delivery Duty Unpaid’ or ‘Door delivery Duty Unpaid’. In the case of DDU, the seller meets all costs except importing tax or duty of the said goods at importing country. DDU shipment, except duty or taxes of importing country, all other charges have to be paid by the seller of goods. In other words, the selling cost of goods included all charges to deliver goods up to the door of the consignee except duty or tax of importing country.In a DDU shipment, the seller takes care of all necessary transportation, customs clearance charges, and shipping charges, etc. at load port and destination port inclusive of handling charges at the port of loading and port of discharge.
Delivered Duty Paid (Door delivered duty Paid), the seller of goods meets complete expenses including duty or tax under goods to deliver at the premises of buyer. In other words, the selling cost of goods includes all expenses inclusive of taxes to reach the goods at the doorstep of the buyer’s premises. In a DDP shipment, the exporter bears all expenses of transportation, customs clearance, handling expenses, and all other charges at load port and destination port to reach the goods at the importer’s premises. DDP means the seller pays for the import customs clearance, duties, and taxes associated with importing a product into another country. DDP means that the seller pays all requisite import fees before the import crosses borders.
DDU, which is also known as DAP (Duties At Place), means the buyer has to pay for all import customs clearance, duties, and taxes upon delivery. Basically, DDU/DAP means that the buyer has to pay for all the requisite import fees when the import arrives at their address. Terms of trade, also called Incoterms or International Commercial Terms, details seller or buy bear the responsibility and cost for import clearance, duties, and delivery to the final destination. Two common terms of trade options are DDP and DDU.CategoriesTrade Finance
