Shine's DDU and DDP service
Shine's DDU service
Delivered Duty Unpaid (DDU) is an old international trade term indicating that the seller is responsible for the safe delivery of goods to a named destination, paying all transportation expenses, and assuming all risks during transport.
Once the goods arrive at the agreed-upon location, the buyer becomes responsible for paying import duties, as well as further transport costs.
Responsibilities Under Deliverd Duty unpaid (DDU)
DDU and DDP introduction:
According to DDU arrangements, the seller secures licenses and takes care of other formalities involved in exporting a good; it is also responsible for all licenses and costs incurred in transit countries, as well as for providing an invoice at its own cost.
The seller assumes all risk until the goods are delivered to the specified location, but it has no obligation to obtain insurance on the goods.
The buyer is responsible for obtaining all necessary licenses for importing the goods and paying all relevant taxes, duties, and inspection costs. All risks involved in this process are borne by the buyer. Once the goods are placed at the disposal of the buyer, all further transportation costs and risks fall on the buyer.
Unlike DDP (delivery duty paid), where the seller takes the most responsibility for delivery costs all the way up to the consignee’s doorstep, DDU requires the consignee to take the responsibility of costs, and oftentimes physical delivery, once they have signed for the shipment.
DDU can provide for additional costs to be taken on by the seller if they are agreed upon ahead of time. For example, the parties may agree that the seller will pay expenses such as value added tax (VAT) or customs charges. These terms should be clearly stated on their contracts.
Difference Between DDU and DDP
1.the seller bears the majority of the burden – incur the cost of getting the goods all the way to the door of the buyer
2.the buyer is favoured, taking very little responsibility in the delivery process
1.the seller bears the burden of cost and delivery to the destination country, at which point the responsibility is transferred to the buyer
2.these terms are favourable to both parties since each assumes responsibility in their own country.