Delivered Duty Unpaid (DDU) is a term commonly used in business contracts to outline the obligations of both the buyer and seller in regards to the delivery of goods. Under this term, the seller is responsible for ensuring that the goods are cleared for export, covering transportation costs, and making the goods available to the buyer at the designated destination. However, it is the buyer’s responsibility to pay any import duties that may be incurred. Once the seller’s carrier reaches the agreed-upon destination, the delivery is considered complete, and any risk of loss is transferred to the buyer. While this term is typically used for land delivery, it does not restrict the mode of transportation. If the delivery point happens to be a port, alternative terms such as Delivered Ex Ship or Delivered Ex Quay are often preferred.
Delivered duty unpaid (DDU) is a contractual term that outlines the obligations of both the buyer and seller in terms of delivery, payment, and risk of loss of goods. In this arrangement, the seller is responsible for clearing the goods for export, covering the cost of carriage (excluding unloading charges and import duties), and ensuring that the goods are available to the buyer on the carrier at the agreed destination. The seller’s delivery is considered complete when their carrier arrives at the destination. However, the buyer is responsible for paying all import duties. For instance, if a company in the United States orders 1000 units of a product from a manufacturer in China under DDU terms, the manufacturer will handle the export clearance, transportation costs, and making the goods available on the carrier. Nevertheless, the buyer will be accountable for paying any import duties and taxes once the goods arrive in the US. It is important for the buyer to consider these additional expenses when budgeting for the purchase.
DDU is a shipping term that means the seller is responsible for delivering the goods to the buyer’s specified location, but the buyer is responsible for paying any import duties or taxes.
The buyer is responsible for paying any import duties or taxes under DDU.
If the buyer refuses to pay the import duties or taxes, the goods may be held by customs or returned to the seller at the buyer’s expense.
No, the seller cannot include the cost of import duties and taxes in the price of the goods under DDU.
The seller is responsible for any damage or loss of the goods during shipping under DDU.
Yes, the buyer can request a different shipping term than DDU, such as Delivered Duty Paid (DDP), where the seller is responsible for paying the import duties and taxes.
The buyer is responsible for providing all necessary documents for customs clearance under DDU, such as import licenses, permits, and certificates.
Yes, the buyer can refuse delivery of the goods under DDU, but they may be responsible for any shipping and handling fees incurred.
The buyer is responsible for any fees or penalties incurred due to customs delays under DDU.
No, the seller cannot be held liable for any legal issues that arise during customs clearance under DDU, as it is the buyer’s responsibility to provide all necessary documents and comply with all customs regulations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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