DDU shipping and DDP shipping are both incoterms used loosely when shipping goods cross-border. They are both statuses for international shipments that specify which party will be paying import fees for an order before it’s out for delivery.
What is DDU shipping?
DDU stands for Delivered Duty Unpaid. Under this trade term, the exporters and importers deliver goods in a certain place in the importing country. The exporter must bear all the costs and risks of the goods delivered to the designated place. At the same time, the exporter handles the costs and risks of customs procedures.
However, the tariffs, value-added tax and other official fees for the imported goods are not included. Importers need to deal with the additional costs and risks caused by not being able to handle the import customs clearance process of the goods in a timely manner.
Express air delivery can also be regarded as DDU services to a certain extent.
Regular Air and regular ocean cargo customers often choose to do DDU services.
What is DDP shipping from China?
DDP stands for Delivered Duty Paid. Under this trade term, the exporter shall complete the import customs clearance procedures at the destination designated by the importer and exporter, and then deliver the goods to the importer.
The exporter needs to bear all the risks in the process of delivering the goods to the designated destination. The exporter also needs to go through the customs clearance procedures at the destination port. Tariffs, custom fees and other expenses are also paid by the exporter. Under this trade term, the seller’s responsibility is the greatest. If the seller needs to make sure to get the import license.
What are the differences between DDU and DDP?
The biggest difference between DDU and DDP lies in the risks and costs of the goods in the customs clearance process at the port of destination.ForwarderOne.com
If the exporter or the freight forwarder is able to complete the import declaration, then sellers can choose DDP. If the exporter or freight forwarder is not able to handle related matters, DDU term should be used.
The above is the introduction of some basic definitions and differences between DDU and DDP. Sellers must choose appropriate trade terms case by case so that their cargo can be delivered properly.
How to calculate DDU and DDP fees
CIF cost = FOB cost + Export charge origin port + Ocean freight cost
DDU cost = CIF cost + Local charge at the destination port
DDP cost = DDU cost + Tariff at the destination port
The difference between DAP and DDU INCOTERMS
DAP, Delivered at Place, is a new term in the 2010 general regulations. DDU is a term in the 2000 General Regulations. DDU is not in standard term any more as in 2010 terminology.
The terms of DAP are defined as Delivery at destination. This term applies to any transportation methods. It refers to when the goods that are ready to be unloaded on the arriving transportation tool are handed over to the buyer for disposal at the designated destination It belongs to the seller’s delivery, and the seller bears all risks of the goods shipped to the designated place. It is best for the parties to clearly specify the location within the agreed destination, because the risk to that location is borne by the seller.