DDU- Delivered Duty Unpaid
DDU or “delivered duty unpaid,” is a commonly used incoterm. International Commercial Term is a set of incoterms defined by International Chamber of Commerce to clearly define the international shipping terms and responsibilities between the buyer and the seller.
What is DDU Incoterm?
DDU Incoterm refers to the condition that the seller must deliver the ready merchandise to the decided location in the country where they are imported.
While in case of DDP (delivery duty paid), the seller is liable to pay for the delivery costs to deliver the consignment to the buyer’s location, DDU makes sure that the buyer takes the responsibility of delivery costs and even physical delivery cost, after agreement for shipment is signed.
However, DDU may include additional charges such as customs charges to be paid by the seller if it is mentioned in the agreement with buyer.
Advantage of DDU
- The seller is responsible for all the costs and risks associated with the shipment of goods until they reach the agreed point in the destination country. Once the buyer takes the delivery in their country, it is buyer’s responsibility after that. It is the most feasible arrangement for both parties because the buyer is well versed with the formalities and laws of their country, while it is difficult for the seller to understand rules of a foreign land.
- Tracking of shipments is very easy in one’s own country than in a foreign nation. So both the parties can easily track their shipment in their own countries.
DDU helps to divide the risk of delivery between buyer and seller, almost equally.