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 has 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.
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