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Glossary
Consignee
Glossary
DDU (Delivered Duty Unpaid)
Definition
DDU (Delivered Duty Unpaid) is an outdated Incoterm (International Commercial Term) that was used in international trade agreements to define the responsibilities of the seller and the buyer concerning the delivery of goods. Under DDU terms, the seller was responsible for arranging transportation and covering all costs and risks associated with delivering the goods to a specified place, which could be the buyer's premises or another agreed-upon location. However, unlike DDP (Delivered Duty Paid), the seller was not responsible for customs clearance, payment of import duties, taxes, or other charges. The buyer was responsible for these costs and any additional expenses that might arise. Please note that DDU was replaced by DAP (Delivered At Place) in the Incoterms 2010 revision.
— sennder Team
FAQ
DDU was replaced by DAP in the Incoterms 2010 revision to simplify and modernize the Incoterms rules. DAP offers a more flexible and up-to-date approach to defining the responsibilities of the seller and the buyer concerning the delivery of goods, while still providing a similar allocation of responsibilities as DDU.
Although DDU is no longer part of the current Incoterms rules, parties in an international trade agreement may still choose to use DDU if they specifically agree to do so. However, it is recommended to use the current Incoterms rules, such as DAP, to ensure clarity and avoid potential misunderstandings.
The primary difference between DDU and DDP was the responsibility for customs clearance and payment of import duties, taxes, and other charges. Under DDU, the buyer was responsible for these costs, while under DDP, the seller assumed responsibility for these expenses.
Example or usage in road freight logistics:
A manufacturer in the Netherlands was selling agricultural equipment to a buyer in Belgium under DDU terms. The seller arranged transportation and covered all costs and risks associated with delivering the equipment to the buyer's warehouse in Belgium. Once the goods were made available for unloading at the warehouse, the buyer assumed responsibility for customs clearance, payment of import duties, taxes, and other charges.