Introduction about the Delivered Duty Unpaid service

The DDU Shipping is one type of foreign trade, with which the seller is serve the duty to ensure safe delivery of all freight or services to a predetermined location, to pay and take all relevant shipping costs

If the goods or services arrive at the terminus as agreed, the buyer is responsible for securing payment and other charges from the customer. If they fail, he bears the consequences. The seller bears the costs and risks associated with the delivery of the goods to the place of delivery.

Understanding Delivery Duty Unpaid (DDU) The International Chamber of Commerce (ICC) was originally founded after World War to promote prosperity in Europe by creating standards for international trade. Inco terms are contractual regulations that describe who bear the costs and risks of international transactions. These can change under the responsibility of the ICC. Due to legal and logistical complexity, the ICC aims to make things easier for companies by standardizing its terms.

Obligations of the seller

  • To provide goods and commercial documents in accordance with the requirements of the sales contract.
  • Organize the export clearance and all other export formalities.
  • Organizes and bears all costs for the transport of the goods to the named destination.
  • Bears the risk for the goods until they are made available to the buyer at the named destination.
  • The seller must present the buyer with the transport documents that enable him to take possession of the goods at the named destination.

Obligations of the buyer

  • The buyer has to pay for the goods in accordance with the sales contract
  • The buyer has to obtain all the commercial papers, licenses, and permits required for the import and to organize the customs clearance and import formalities at his own risk and expense.
  • The buyer accepts delivery of the goods after they have been delivered by the seller to the specified destination.
  • The buyer must understand all the dangers of the goods as soon as the goods are available at the named destination.
  • The buyer bears all transport costs, import customs formalities, and customs fees as well as other formalities and fees in connection with the transport of the shipment from the time the goods are made available at the specified destination.

What is the difference between DDU and DDP?

While DDU is often the standard, some vendors use a DDP model. DDP stands for Delivered Duty Paid. The difference is that in addition to the export costs, as with DDU, the seller is also responsible for:

  • The payment of import duties or customs duties
  • Any additional taxes or costs that may be required

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