International Business

The Meaning Of Delivered Duty Unpaid- DDU Incoterms

Delivered Duty Unpaid- DDU Incoterms

Incoterms are much popular in the commercial arena ! Nowadays, there are so many commercial terms used mostly in international business. But, how many of them are we well conversant with? One of the popular commercial or shipping terms is Delivered Duty Unpaid– DDU Incoterms. What does DDU Incoterms mean or what is the essence of this Incoterm? No problem. Today, I am explaining the basic idea on this key commercial term of delivery for your easy understanding.

DDU- Delivered Duty Unpaid (—named place of destination) [ DDU Incoterms ]

Delivered Duty Unpaid – DDU Incoterms means that the seller delivers the goods to the buyer, not cleared for import, and not unloaded from the arriving means of transport at the named place of destination. The seller has to bear all the costs and risks involved in bringing the goods thereto, other than, where applicable, any ‘duty‘ (which term includes the responsibility for and the risk of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges)- for import in the country Of destination. Such ‘duty‘ has to be borne by the buyer as well as any costs and risks caused by the failure to clear the goods for import in time. (Incoterms 2010)

This term is similar to DDP except that the seller’s obligation excludes obtaining of import license, payment of duties, taxes and other official charges payable upon importation. If the parties wish the seller to carry out customs formalities and bear the costs and risks resulting therefrom, this to be made clear by adding words to this effect.

Documents required under Delivered Duty Unpaid– DDU Incoterms are as follows:

  • All Transport documents relating to the shipment of goods
  • Invoice
  • Other documents if required by the buyer.

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