Terms of Trade - DDP vs DDU

This article will tell you what is terms of trade (also called Incoterms), and difference between DDP, DDU, DAT and DAP. Terms of trade information is required when filling in customs details of invoices for international shipments. 

What is terms of trade?

Terms of trade, also called Incoterms or International Commercial Terms, details seller or buy bear the responsibility and cost for  import clearance, duties, and delivery to final destination. Two common terms of trade options are: 

  Import Customs Clearance Import Duties and Taxes
DDP - Delivered Duty Paid Seller Seller
DDU- Delivered Duty Unpaid  Buyer Buyer

DDP - Delivered Duty Paid

DDP means Delivered Duty Paid, meaning seller bears complete expenses of transportation, customs clearance, and import duties and taxes to reach the goods at buyer's premise. 

DDU - Delivered Duty Unpaid

DDU means Delivered Duty Unpaid, meaning that buyer has to bear the cost of import customs clearance, and import duties and taxes, while seller is responsible for all other charges.

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