Explain DDU terms in export import trade. What is DDU delivery

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The meaning of DDU term is also called as ‘Delivery Duty Unpaid’ or ‘Door delivery Duty Unpaid’. In the case of DDU, the seller meets all costs except importing tax or duty of the said goods at importing country.Explain DDU terms in export import trade. What is DDU delivery

I will explain DDU terms of delivery with a simple example. You are a Machinery seller situated near Mumbai, India. The buyer is situated in New York. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on DDU New York price of USD 6050. Here the selling cost of goods is USD 6050 DDU New York. You (the seller) arrange to carry the goods to Mumbai port, meet expenses including customs clearance in Mumbai, pays the ocean freight or airfreight up to New York, appoint a freight forwarder to customs clear the cargo at New York and deliver the goods at the door step of buyer’s place . In other words, as per DDU terms of delivery, all delivery expenses up to the door step of buyers place in New York is borne by the seller except duty or tax of importing country.

DDU terms of delivery has been removed from international commercial terms 2010. DAP has been added which means Delivered at Place.  For example, DAP New York means Delivered at Place New York.

However, the term DDU can be mentioned on documents which does not effect any terms of contract if mentioned in export contract that you have used inco terms 2000.

 

The above information is a part of Online Training Course on howtoexportimport

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Mohamed Rafiq: Thank you for your help. Correct information I get from this site.

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