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The difference between DDP, DDU and DAP Trade Terms

The difference between Basenton Logistics DDP, DDU, DAP trade terms

The two trade terms DDP and DDU are often used in the import and export of goods, and many exporters do not have a deep understanding of these trade terms, so they often encounter some unnecessary in the process of exporting goods. Trouble, so, what exactly are DDP and DDU, and what are the differences between these two trade terms?

China freight forwarder
China freight forwarder

The English of DDU is “Delivered Duty Unpaid”, which is “delivered duty unpaid (designated destination)”. This trade term refers to the delivery of goods by exporters and importers somewhere in the importing country in the actual working process, in which the exporter must bear all the costs and risks of delivering the goods to the designated place, as well as handling Costs and risks of customs procedures. However, it should be noted that customs duties, taxes and other official fees that need to be paid when importing goods are not included here. Importers need to deal with the additional costs and risks caused by not being able to handle the import customs clearance process for the goods in a timely manner.

Generally speaking, the details of the costs involved in DDU are quite complicated. If this trade term is used, the importer must ask the other party to leave a written text and stamp it when confirming the price with the freight forwarder, so as to avoid the occurrence of Later disputes.

DDP’s English is “Delivered Duty Paid”, which means “delivery after duty payment (designated destination)”, which means that the exporter will go through the import customs clearance procedures at the destination designated by both importers and exporters, and then Deliver the goods to the importer.

Under 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 go through the customs clearance procedures at the destination port, and pay taxes, handling fees and other fees. It can be said that under this trade term, the seller has the greatest responsibility. This term should still be used with caution if the seller cannot directly or indirectly obtain an import license.

What is the difference between DDU and DDP?
The biggest difference between DDU and DDP mainly lies in the question of who will bear the risks and expenses during the import and customs clearance process of the goods at the destination port. If the exporter has the ability to complete the import declaration, then DDP can be selected. If the exporter is not able to handle the relevant matters, or is unwilling to go through the import formalities, bear the risks and costs, then the DDU term should be used.
The above are some basic definitions and differences between DDU and DDP. In the actual work process, exporters must choose appropriate trade terms according to their actual work needs, so as to ensure their work. completed normally.

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