DDU in export-import

The DDU is also called as ‘Delivery Duty Unpaid’ or ‘Door delivery Duty Unpaid”. Delivered Duty Unpaid (DDU) is an old international trade term indicating that the seller is responsible for the safe delivery of goods to a named destination, paying all transportation expenses and assuming all risks during transport. Once the goods arrive at the agreed-upon location, the buyer becomes responsible for paying import duties, as well as further transport costs. 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.

DDU means Delivered Duty Unpaid. In a DDU shipment, except duty or taxes of importing country, all other charges have to be paid by the seller of goods. In other words, the selling cost of goods includes 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 of 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.