Difference between DDP and DDU terms of delivery

Posted on 30 April 2018 Category : For Beginners

The information provided here is part of Online export import training guide

The difference between DDU and DDP.

What is DDU and how does DDP work in terms of delivelry under international business? Let us discuss DDP Vs DDU in this artilce.

The difference between DDU and DDP terms of delivery can be explained as below:

DDU means Delivered Duty Unpaid. DDP means Delivered Duty Paid.

In a DDU shipment, except duty or taxes of importing country, all other charges has to be paid by the seller of goods. In other words, the selling cost of goods included all charges to deliver goods up to the door of consignee except duty or tax of importing country. In a DDU shipment, the seller takes care all necessary transportation, customs clearance charges, and shipping charges etc. at load port and destination port inclusive of handling charges at port of loading and port of discharge. Click here to know more about DDU Inco Terms.

In the case of DDP – Delivered Duty Paid (Door delivered duty Paid), the seller of goods meets complete expenses including duty or tax under goods to deliver at the premises of buyer. In other words, the selling cost of goods includes all expenses inclusive of taxes to reach the goods at the door step of buyer’s premises. In a DDP shipments, exporter bears all expenses of transportation, customs clearance, handling expenses and all other charges at load port and destination port to reach the goods at importer’s premises. Click here to read more about DDP Inco Terms

In this article, I have explained about DDP and DDU terms of delivery in Import and Export under International trade. You can also share your experience below in handling DDP and DDU shipments.

Detailed articles about Inco Terms of Delivery under export and import of International business have been mentioned in separate category – INCO TERMS – in this web site. You can click here to read.

Did you like this article about DDU vs DDP terms of delivery? Comment below your thoughts about this subject - Difference between DDP and DDU.

The above information is a part of Import Export course online

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Comments

Ruby: On 10 April 2013 i'm sort of confused with these terms. I have a MASTER B/L with freight prepaid , this is DDU shipment , so does that mean the house b/l goes collect or prepaid, and who do we invoice the DDU charges to, h e l p !

admin: On 10 April 2013 Hi Ruby, MBL and HBL can be either freight collect or prepaid depends the agreement between freight forwarders and shipping main carriers. In a DDU shipment, all carriage charges except duties or taxes if any would have paid (or agreed to pay) to shipping carrier by the supplier of goods (seller). If you are a freight forwarder, you need to deliver cargo to importer, without collecting any charges from him except duties or taxes if any. You can invoice your DDU charges to your office counterpart at load port. (A complete details about terms of delivery have been explained in the same web blog www.howtoexportimport.com, a free tutorial on export and import trade.

saleh: On 10 November 2013 thank you for this excellent information but i think there is a little small!!! mistake the second Line i think you mean DDU not DDP ? (DDP means Door Delivery duty Unpaid. DDP means Door Delivery duty Paid.) i am sure it is printing mistake regards saleh from Yemen

surendran: On 12 November 2013 Hi Saleh, You are right. Thanks for pointing out this mistake. Thanks once again for your support to this web blog.

thanks for all you guys: On 20 November 2013 i got a lot of help

GBS for shipping : On 18 December 2013 Dear Admin Thanks for u , but how i can make a DDP shipment with MBL ?

nice : On 04 January 2014 good

Surendran Kollerath: On 09 March 2014 GBS for shipping, It does not make any difference in any Inco terms (whether DDP,DDU etc.) if you move goods through a freight forwarder where in MBL is involved.

Tran Hoang Trung: On 20 August 2015 What is DDU and how does DDP work in terms of delivery under international/Asia/China/Vietnam business?

thida: On 29 October 2015 In the instruction paper the payment in Collect/prepaid/as arrange for FOB,DDU,DDP,CIF and how to choose thi payment.

G N SAHU: On 09 February 2016 Can any international courier/logistic company for example DHL can ask the consignee of the consignment to bear the cost towards Custom Duty, Octroi etc on the consignment booked for delivery on DDP basis.

ujjwal rao : On 18 April 2016 I am UJJWAL i came new to Bangalore and one of my friends introduced me to iPhone dealer who sells from Malaysia. i had a word with them and they said they can provide me iPhone unlocked model for 30,000/- and told to deposit 10,000/- and rest 20 k was cod. I deposited 10,000/- as they said but now they said that my phone is held in customs and they are asking for import export license which i do not have. They are asking for my govt valid Id so that they can make the import export license. They say only an pic of id card would do and say the licence would cost 15,000/- with a validity of 10 years. Sir i need your guidance. as i am not aware about customs and whats the way of getting the phone or has the dealer cheated me. I had made a deposit of 10,000/- already should i trust them again or not.

Jitender SIngh Negi: On 17 August 2016 Please advise the difference of below shipment terms. EXPORT & IMPORT BOTH OF SHIPMENT. DDP, DDU.