Difference between DDP and DDU terms of delivery
Thursday, September 18, 2014     Category : For Beginners

 

The difference between DDU and DDP.

What is DDU and how does DDP work in terms of delivelry under international business?  Let us discuss DDP Vs DDU in this artilce. 

 

The difference between DDU and DDP terms of delivery can be explained as below:

DDU means Delivered Duty  Unpaid.  DDP means Delivered Duty Paid.

In a DDU shipment, except duty or taxes of importing country, all other charges hasdifference between DDU and DDP to be paid by the seller of goods. In other words, the selling cost of goods included all charges to deliver goods up to the door of consignee except duty or tax of importing country. In a DDU shipment, the seller takes care all necessary transportation, customs clearance charges, and shipping charges etc. at load port and destination port inclusive of handling charges at port of loading and port of discharge. Click here to know more about DDU Inco Terms.


In the case of DDP – Delivered Duty Paid (Door delivered duty Paid), the seller of goods meets complete expenses including duty or tax under goods to deliver at the premises of buyer. In other words, the selling cost of goods includes all expenses inclusive of taxes to reach the goods at the door step of buyer’s premises. In a DDP shipments, exporter bears all expenses of transportation, customs clearance, handling expenses and all other charges at load port and destination port to reach the goods at importer’s premises.  Click here to read more about DDP Inco Terms

 

In this article, I have explained about  DDP and DDU terms of delivery in Import and Export under International trade.  You can also share your experience below  in handling DDP and DDU shipments.  


Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read. 

 

Did you like this article about DDU vs DDP terms of delivery?  Comment below your thoughts about this subject - Difference between DDP and DDU.

 

 

Related Read:

 

Difference between DDU and DAP

Difference between DAP in payment terms and DAP in delivery terms.

Any difference between DP and DAP terms of payment

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What is C& I terms of delivery in export import business?

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Comments

 
Ruby Says :
Wednesday, April 10, 2013
i'm sort of confused with these terms. I have a MASTER B/L with freight prepaid , this is DDU shipment , so does that mean the house b/l goes collect or prepaid, and who do we invoice the DDU charges to, h e l p !
admin Says :
Wednesday, April 10, 2013
Hi Ruby, MBL and HBL can be either freight collect or prepaid depends the agreement between freight forwarders and shipping main carriers. In a DDU shipment, all carriage charges except duties or taxes if any would have paid (or agreed to pay) to shipping carrier by the supplier of goods (seller). If you are a freight forwarder, you need to deliver cargo to importer, without collecting any charges from him except duties or taxes if any. You can invoice your DDU charges to your office counterpart at load port. (A complete details about terms of delivery have been explained in the same web blog www.howtoexportimport.com, a free tutorial on export and import trade.
saleh Says :
Sunday, November 10, 2013
thank you for this excellent information but i think there is a little small!!! mistake the second Line i think you mean DDU not DDP ? (DDP means Door Delivery duty Unpaid. DDP means Door Delivery duty Paid.) i am sure it is printing mistake regards saleh from Yemen
surendran Says :
Tuesday, November 12, 2013
Hi Saleh, You are right. Thanks for pointing out this mistake. Thanks once again for your support to this web blog.
thanks for all you guys Says :
Wednesday, November 20, 2013
i got a lot of help
GBS for shipping Says :
Wednesday, December 18, 2013
Dear Admin Thanks for u , but how i can make a DDP shipment with MBL ?
nice Says :
Saturday, January 04, 2014
good
Surendran Kollerath Says :
Sunday, March 09, 2014
GBS for shipping, It does not make any difference in any Inco terms (whether DDP,DDU etc.) if you move goods through a freight forwarder where in MBL is involved.
 

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