Delivery Duty Unpaid (DDU) is a type of shipping term that indicates that the buyer is responsible for paying any duties or taxes that may be levied on the goods by the destination country. This means that the seller is responsible for delivering the goods to the buyer’s location, but the buyer is responsible for paying any customs duties, taxes, or other fees that may be required by the destination country.
DDU is one of several shipping terms that are commonly used in international trade. Other shipping terms include:
- Ex Works (EXW): This term indicates that the seller is responsible for making the goods available at their location, but the buyer is responsible for all costs and risks associated with transporting the goods to their destination.
- Free on Board (FOB): This term indicates that the seller is responsible for the costs and risks associated with delivering the goods to the port or other loading facility, but the buyer is responsible for the costs and risks associated with transporting the goods from that point to their final destination.
- Cost and Freight (CFR): This term is similar to FOB, but it also includes the cost of transporting the goods by sea or other means of transport to the named port of destination. The buyer is still responsible for the costs and risks associated with transporting the goods from the port to their final destination.
- Cost, Insurance, and Freight (CIF): This term is similar to CFR, but it also includes the cost of insuring the goods against loss or damage during transit. The seller is responsible for the costs and risks associated with delivering the goods to the named port of destination, and the buyer is responsible for the costs and risks associated with transporting the goods from the port to their final destination.
DDU is often used when the buyer wants to have more control over the customs clearance and import process for the goods they are purchasing. In a DDU transaction, the buyer is responsible for obtaining the necessary documentation and paying any applicable duties or taxes to clear the goods through customs. This can help the buyer avoid any delays or complications that may arise during the import process.
