The difference between DDP, DDU, DAP


The two trade terms DDP and DDU are often used in the import and export of goods, and many exporters do not have a deep understanding of these trade terms.


Therefore, some unnecessary troubles are often encountered in the process of exporting goods. So, what are DDP and DDU, and what are the differences between these two trade terms?

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What is DDU?
DDU's English is "Delivered Duty Unpaid", which is "Delivered Duty Unpaid (designated destination)". This kind of trade term means that in the actual work process, exporters and importers deliver goods in a certain place in the importing country. Among them, the exporter must bear all the costs and risks of the goods delivered to the designated place, as well as handling Costs and risks of customs procedures.

But it is important to note that this does not include customs duties, taxes and other official fees that need to be paid when the goods are imported. Importers need to deal with the additional costs and risks caused by not being able to handle the import customs clearance process of the goods in a timely manner.

Generally speaking, the details of the expenses involved in DDU are quite complicated. If this kind of trade term is used, the importer must ask the other party to leave a written text when confirming the price with the forwarder, and seal it to avoid occurrence. Later disputes.

What is DDP?
The English name of DDP is "Delivered Duty Paid", which means "Delivered Duty Paid (designated destination)". This method of delivery means that the exporter shall complete the import customs clearance procedures at the destination designated by the importer and exporter. Deliver the goods to the importer.

Under this trade term, the exporter needs to bear all the risks in the process of delivering the goods to the designated destination, and also needs to go through the customs clearance procedures at the destination port, and pay taxes, handling fees and other expenses. It can be said that under this trade term, the seller's responsibility is the greatest. If the seller cannot obtain an import license directly or indirectly, then this term should be used with caution.
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What are the differences between DDU and DDP?

The biggest difference between DDU and DDP lies in the issue of who bears the risks and costs of the goods in the customs clearance process at the port of destination. If the exporter is able to complete the import declaration, then you can choose DDP. If the exporter is not able to handle related matters, or is unwilling to go through the import procedures, bear the risks and costs, then the DDU term should be used.

The above is the introduction of some basic definitions and differences between DDU and DDP. In the actual work process, exporters must choose appropriate trade terms according to their actual work needs, so that they can guarantee their work. The normal completion.
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How to calculate DDU and DDP fees:
FOB amount. Add: 1. All local charge at the export port 2. Sea freight (whether positive or negative) is the cif amount. If you want ddu: add the local charge of the destination port, if you want ddp: add the purpose Port tariffs

The difference between DAP and DDU:

DAP (Delivered at Place) destination delivery terms (add the specified destination) it is a new term in the 2010 General Regulations, DDU is a term in the 2000 General Regulations, and there is no DDU in 2010. The terms of DAP are agreed as follows: Delivery at destination. This term applies to one or more of any means of transportation. It refers to when the goods that are ready to be unloaded on the arriving means of transport are handed over to the buyer for disposal at the designated destination. When the seller delivers the goods, the seller bears all risks of transporting the goods to the designated place. It is best for the parties to clearly specify the location within the agreed destination, because the risk to that location is borne by the seller.

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