Sunny worldwide logistics has been established for more than 20 years, and the special line transportation in Philippines has been carried out for more than 20 years. We promise that if we cannot get the goods due to customs problems, we will give you 100% compensation for the goods. This is a promise that other freight forwarders dare not give you.
DDP and DDU are two kinds of trade terms that are often used in the import and export of goods, and exporters may not have a deep understanding of these trade terms, so they often encounter some unnecessary trouble in the process of exporting goods. So, what is DDP and DDU and what are the differences between these two trade terms?
What is DDU?
DDU in English is "Delivered Duty Unpaid", that is, "Delivered Duty Unpaid (Designated Destination)". It means that in the actual process, the exporter and the importer deliver the goods at a certain place in the importing country. In which the exporter must bear all the costs and risks of delivering the goods to the named place, as well as the costs and risks of customs formalities.
However, it is important to note that customs duties, taxes and other official fees payable at the time of importation of the goods are not included here. The importer has to bear the additional costs and risks arising from the failure to clear the goods in time.
Generally speaking, DDU costs involved in the details are relatively miscellaneous, if the use of this trade term, the importer with the freight forwarder to confirm the price of the time, be sure to let the other party to leave a written text, and stamped to avoid disputes in the later stages of the problem.
What is DDP?
DDP in English as "Delivered Duty Paid", meaning "Delivered after tax (designated destination)", this delivery means that the exporter in the import and export of the two parties designated destination for the completion of import customs clearance procedures, and then the goods to the importer. goods to the importer.
In this trade term, the exporter needs to bear all the risks in the process of delivering the goods to the designated destination, and also needs to handle the customs clearance procedures at the port of destination, and pay taxes, fees and other costs. It can be said that under this kind of trade terms, the seller needs to bear the greatest responsibility. If the seller is unable to obtain an import license directly or indirectly, then he should still be careful to use this delivery method.
What is the difference between DDU and DDP?
The biggest difference between DDU and DDP is the question of who bears the risks and costs during the import clearance process at the port of destination. If the exporter has the ability to complete the import customs clearance, then the DDP can be chosen, if the exporter is not capable of handling the relevant matters, or is not willing to handle the import formalities, risks and costs, then the DDU terminology should be used.
The above is the introduction of some basic definitions and differences between DDU and DDP, in the actual work process, exporters must be based on their actual work needs, choose the right trade terms, so as to ensure the normal completion of their work.
How to calculate the cost of DUU and DDP.
Fob amount . Add: 1, all the local charge of the export port; 2, ocean freight (whether positive or negative) is the cif amount. If you want DUU: plus the local charge of the destination port, if you want DDP: plus the tariff of the destination port
Difference between DAP and DDU.
DAP(Delivered at Place) is a new term of 2010 General Conditions, DDU is a term of 2000 General Conditions, there is no more DDU in 2010.The terms of DAP are agreed as follows: Delivered at Place, this term applies to one or more of any modes of transportation, means at the specified destination, the goods will be delivered on the arriving conveyance ready to be unloaded. This term applies to one or more of any modes of transportation and means that at the named place of destination, the goods arriving on the means of transportation ready to be unloaded are placed at the buyer's disposal, i.e., they are to be delivered by the seller, who bears all the risks involved in the transportation of the goods to the named place. It is desirable that the parties clearly specify the place within the agreed destination, since the risk of transportation to that place is borne by the seller.
Translated with DeepL.com (free version)
