What is DDP? DDP and DDU are two trade terms that are often used in the import and export of goods. However, many exporters do not have a deep understanding of these trade terms, so they often encounter some unnecessary troubles in the process of customized fitness apparel export. What are the differences between DDP and DDU?
What is DDP?
What is DDP ? DDP refers to the abbreviation of “delivered duty paid”, which means “delivery after duty is paid(designated destination)”. This kind of delivery means that the exporter delivers the goods to the importer after completing the import customs clearance procedures at the destination designated by both the import and export parties.
Under this trade term, the exporter is required to bear all the risks in the process of transporting the goods to the designated destination, and also need to go through the customs clearance procedures at the port of destination, and pay taxes and fees.
It can be said that under this trade term, the seller needs to bear the greatest responsibility. If the seller cannot obtain import license directly or indirectly, DDP should be used cautiously.
What is DDU?
DDU is the abbreviation of “delivered duty unpaid”, which means “delivery before duty is paid”. This trade term refers to the fact that in the actual process of work, the exporter and the importer deliver the goods in a certain place in the importing country, in which the exporter must bear all the costs and risks of transporting the goods to the designated place, as well as the costs and risks of handling customs formalities.
However, it is important to note that customs duties, taxes and other official fees for the import of goods are not included here. Importers need to deal with the additional costs and risks caused by the failure to timely handle the import clearance process of the goods.
Generally speaking, the details of DDU’s expenses are quite miscellaneous. If this trade term is used, the importer must confirm the price with the freight forwarder in a written form and a seal, so as to avoid disputes in the later stage.
What are the differences between DDU and DDP?
The biggest difference between DDU and DDP lies in who should bear the risks and costs in the process of customs clearance at the port of destination. If the exporter has the ability to complete the import declaration, DDP can be selected. If the exporter is not able to handle the relevant matters, or is not willing to go through the import procedures, bear the risks and costs, 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 the normal completion of their work.