Delivered Duty Unpaid (DDU)

Delivered Duty Unpaid (DDU) is a shipping term that specifies that the seller is responsible for delivering the goods to the buyer’s designated location, but does not include any customs duties or other taxes payable at the destination country.

Key Features of DDU:

• Seller’s responsibility: The seller is responsible for arranging for the delivery of the goods to the buyer’s designated location.
• Buyer’s responsibility: The buyer is responsible for paying all customs duties and other taxes payable at the destination country.
• Point of delivery: Delivery is made to the buyer’s designated location, but not necessarily to the buyer’s premises.
• Cost: The cost of delivery is typically paid to the seller by the buyer.
• Documentation: The seller is responsible for preparing and assembling all necessary documentation for export, including invoices, packing lists, and customs declarations.

Example:

A company in China manufactures electrical appliances and exports them to the United States under DDU terms. The company packages the appliances and arranges for them to be shipped to a designated warehouse in Los Angeles. The buyer is responsible for paying all customs duties and other taxes applicable in the United States.

Advantages:

• Simplicity: DDU simplifies the shipping process by reducing the number of parties involved and eliminates the need for the buyer to arrange for customs clearance.
• Cost savings: In some cases, DDU can be cheaper than other shipping terms, as the seller may be able to negotiate better rates with the carrier.
• Convenience: DDU offers more convenience for the buyer, as they do not have to worry about arranging for delivery or picking up the goods from the warehouse.

Disadvantages:

• Increased cost: The cost of delivery is typically higher under DDU than other shipping terms.
• Delayed delivery: DDU can sometimes lead to longer delivery times, as the buyer may have to wait for their goods to be cleared through customs.
• Limited liability: The seller’s liability is limited to the point of delivery, meaning they are not responsible for any damage or loss that occurs during customs clearance or subsequent delivery.