DDU (Delivered Duty Unpaid)
What Are DDU Terms?
DDU, or Delivered Duty Unpaid, is an international shipping term that defines the responsibilities of the seller and buyer. Under DDU terms, the seller delivers the goods to a specified destination in the buyer's country, covering all costs and risks associated with transportation, except for duties, taxes, and other import charges which are the responsibility of the buyer. The seller's obligations include arranging and paying for freight, insurance, and handling charges until the goods reach the agreed-upon place.
The term is used interchangeably with Delivered At Place (DAP).
Benefits of DDU Freight Terms
- Seller Control Over Shipment: With DDU terms, the seller maintains control over the shipping process, ensuring the goods are transported according to their standards and preferences.
- Reduced Buyer Burden: Buyers benefit from not having to manage international shipping logistics, as the seller handles most of the transportation and related risks until the goods arrive in the buyer's country.
- Cost Predictability: Since the seller covers most of the transportation costs, the buyer has a clearer understanding of the overall expenses associated with receiving the goods, excluding import duties and taxes.
DAP vs. DDU Terms
The terms DDU (Delivered Duty Unpaid) and DAP (Delivered At Place) are functionally the same. DAP was introduced in 2010 and intended as a replacement for DDU, but both terms remain in use.