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What is the difference between DDP and DDU?

September 29,2022

1: DDP: Delivery after duty paid at destination port

Delivery after duty payment  means that the seller completes the import customs clearance procedures at the designated destination, and delivers the goods that have not been unloaded on the delivery vehicle to the buyer to complete the delivery. The seller must bear all risks and costs of transporting the goods to the named destination, including any taxes and fees payable at the destination where customs formalities are required (including the responsibility and risk of customs formalities, and payment of handling charges. Customs duties, taxes and other charges)

2: DDU: Delivery without duty paid at destination port

Delivery without duty payment means that the seller hands over the goods to the buyer at the designated destination, without going through import formalities or unloading the goods from the means of transport for delivery, that is, the delivery is completed. The seller shall bear all risks and costs of transporting the goods to the designated destination, excluding any taxes and fees payable in the destination country when customs formalities are required, (including the responsibility and risk of customs formalities, and payment of formalities Fees. Duties, taxes and other charges), the buyer must bear this tax and the costs and risks caused by the failure to timely export the goods for import customs clearance.
DDP and DDU are generally only for missing shipments or damage caused by the seller. Generally, the buyer will not ask the seller to do DDP or DDU, because the seller, as a foreign party, does not understand the domestic customs clearance environment and national policies. There are bound to be many unnecessary costs in the process of customs clearance. And these costs will definitely be passed on to the buyer, so the buyer usually does CIF at most.

To sum up, many customers around you are often confused by DDU and DDP. In short, DDP is delivery with tax paid, DDU is delivery without tax, and more choose DDP double-clearing tax package to the door.

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