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Delivered Duty Unpaid (DDU) is an Incoterm where the seller delivers goods to the buyer at a designated location, but the buyer is responsible for paying any import duties, taxes, and customs charges.
In a DDU arrangement, the seller is responsible for the costs and risks associated with delivering goods to a specified location, excluding any customs duties or taxes. The buyer takes on the responsibility for paying import duties, taxes, and any other costs required for the clearance of goods at the destination port. Once the goods arrive at the destination, the buyer assumes the risk and expense for further transportation and delivery.
Delivered Duty Unpaid (DDU) can benefit your business by providing clear responsibilities for both the seller and the buyer. It reduces the seller’s obligations by transferring the responsibility for customs duties and taxes to the buyer, which can make international shipping easier to manage.
The buyer has more control over the final delivery process, ensuring that any required customs paperwork and payments are handled efficiently. This can help businesses avoid unexpected costs and streamline the supply chain.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Delivered Duty Unpaid (DDU) is important because it allows the seller to control most of the shipping process up until the goods arrive at the destination port while ensuring that the buyer is responsible for the final clearance. This arrangement can simplify shipping and make international trade more predictable for both parties by allocating costs according to their respective roles.
For example, a seller in Europe may ship products to a buyer in the U.S. under a DDU agreement, where the seller covers the shipping cost to a U.S. port, but the buyer handles the customs clearance and any duties. This allows the seller to focus on shipping logistics while leaving the final customs responsibility to the buyer.
