Jasmine Gladstone

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.

As soon as entrepreneurs start or plan to start a new business, they begin to hear these terms like VAT, TIN,CST. There are also legal requirements that the business must fulfill. These legalities are important at every step of setting up the business. VAT: Value Added Tax or VAT is a type of tax that is assessed on the increased value of product and service. It is levied on the sale of goods and services such that though it is paid by the producers to the government, the burden of tax ultimately falls on the consumers. TIN: Taxpayer Identification Number (TIN number) is also referred to as Value Added Tax (VAT) Number or CST Number. Allotted by the Commercial Tax Department of respective state governments, this eleven-digit number is mandatory to mention on all VAT related transactions. Therefore, registration for VAT or TIN is a must for any businesses dealing in the sale of goods or products, manufacturing, export, shop-keeping, dealing, e-commerce, etc. CST (Central Sales Tax) ) is a form of indirect tax imposed only on goods sold from one state to another state, which particularly takes into account that the buyer and the seller needs to be in two different states.

Germany is truly recognized as Europe's industrial powerhouse and the world's second largest exporter. The significance of the German marketplace goes well beyond its borders. German market - the largest in the EU - continues to be attractive in numerous sectors and remains an important element of any comprehensive export strategy to Europe. This country provides from its high levels of productivity, a highly skilled labor force, quality engineering, good infrastructure and a location in the center of Europe. The most successful market entrants are those that offer innovative products featuring high quality and modern styling. Germany offers competitive tax regulations, investment incentives and a secure, highly developed political and economic framework. This is supported by excellent infrastructure, good educational system, a highly qualified workforce and a legal system that protects property and individual rights. Germany is one of Europe’s leading automotive manufacturers and exported .

The term trade refers to buying and selling of goods and services for money or money's worth. The term is often synonymous with ‘commerce.’ It may also refer to a particular industry as in the building, tourist or fur trades. Trade is essential for satisfaction of human wants, it is conducted not only for the sake of earning profit; it also provides service to the consumers. If we speak about international trade, then it allows businesses to compete in the global market and to employ competitive pricing for their products and services. As more products become available to the market, consumers meet their needs and satisfy their wants, thus increasing customer satisfaction.Moreover, the exchange of goods and services on a global level has a significant impact on a national economy as exports grow, thus increasing the balance of international payments and significantly contributing to a country’s gross domestic product (GDP).

International trade policy means policy that is related to trading across national boundaries. A government establishes an international trade policy that encompasses actions they will take to protect the best interests of their citizens and companies. Some of the major actions governments take are free trade policies or tariffs. Free trade policies encourage trade between certain countries. A good example of this is NAFTA, the North American Free Trade Agreement, which allowed free trade throughout the United States, Mexico, and Canada. Tariffs are sometimes imposed on other countries as possible punishment for negative actions or to prevent the industry in those countries from damaging similar domestic industries; a tariff ensures the nation gets money from that trade and also discourages as much trade in those certain areas.In fact, international trade policy describes collectively the international laws and multilateral trade agreements that govern the sale of goods between different countries. Some international trade policy is made by transnational institutions such as the United Nations and the World Trade Organization (WTO), which are not directly controlled by any particular national government.