What does DDU mean? How does it work

When considering international shipping packages as a seller or buyer, you may come across a number of terms that are freely used throughout the ordering process. Before ordering or selling, it is worth learning what these terms mean. Most importantly, Delivery Duty Unpaid (DDU) when it comes to shipping is something you need to know, especially with international shipping.

For international shipping orders, a seller can consider a package as DDU, but what does DDU shipping really mean?

DDU shipping means that the seller is liable for below

  • in safe hands delivery of all goods to the specified destination
  • Assumption of all transport costs for the goods
  • Assumption of all risks to the goods during their transport

As soon as the goods have arrived at the specified original destination, DDU means that the buyer is responsible for:

  • Payment of import or customs fees
  • Any additional transport costs required

In principle, DDU means that a seller has to bear all costs and logistics. until the goods reach the originally agreed location free of import and duty. The seller bears the costs and licenses for exports and the buyer bears the costs and licenses for imports.

terms of service that every package that is shipped internationally requires the buyer to bear the import and paperwork costs, even though we do cover export papers as part of our shipping costs.

The unpaid tax is referred to as Delivered At Place (DAP) in the International Chamber of Commerce’s 2010 and 2020 Incoterms, where DDU is a retired term although it is still widely used in the industry so it is worth understanding what it means.

How does DDU work with a packet forwarding service?

As mentioned above, DDU works a little differently from a packet forwarding service. manageable steps completely clear how DDU works with a packet forwarding service. In this case, the buyer is the person placing the order and the seller is the company providing the goods, not the shipping address.

The seller bears all shipping and export costs to the address originally agreed with the buyer. In this case, it would be the shipping address that the buyer agreed with the parcel service.

As with the DDU terms, this means that the seller’s obligation is now in full and the buyer is responsible for all other costs for the delivery, transportation, customs, and import duties.

In this case, the formalities and export fees are handled by the parcel service forward2me instead of the buyer. included in the costs agreed with the parcel delivery service as well as any repackaging fees that may arise.

After leaving the forwarding service, the buyer has to bear all import costs, VAT, etc.

What do you think?

Written by Danny Dotson

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