DDU means unpaid delivery tax, whether your supplier is in Shanghai, Shenzhen, Guangzhou, or elsewhere in China, you can wait for your goods at home, but you only have to take one thing with you: you have to pay the duties and sales tax (if your country has a sales tax, the US usually doesn’t have sales tax).

What does DDU mean in relation to shipping?

The term DDU can be deciphered as Delivery Duty Unpaid. The seller assumes all costs except taxes and duties of the importing country. In the case of DDU, the cost of goods includes all shipping costs to the buyer’s doorstep.

What is DDU (Delivery Duty Unpaid)?

DDU is commonly referred to as “DDU Shipping” and has a significant impact on the responsibilities of the seller.

For you as the buyer, this shipping contract has minimal obligations. The DDU shipping contracts now define that a seller delivers the goods to the buyer’s specified destination. From this point onwards, the buyer bears the costs that include transportation to the final destination and insurance. All of the above are the responsibility of the seller, with the exception of the import processes. Here the buyer has to bear the “taxes and fees” as well as the costs and risks incurred. Due to the lack of timely import and export of goods.

However, this can be negotiated so that the seller goes through the import procedures as well. The negotiation can also include the seller assuming the costs and risks incurred, as well as the fees to be paid when importing the goods. Remember that anything you agree to should be clearly stated in the sales contract.

Seller’s Obligations when Shipping DDU

Shipping DDU has a major impact on the Seller’s responsibilities.

These are:

Delivery of the goods as agreed in the contract

The seller must provide the goods and commercial invoices or their equivalents in electronic copy in accordance with the contact conditions. You must also provide any other documents that the contract may require to verify the performance of the goods.

Permits and permits

The seller bears the risks and costs of obtaining the relevant export permits and other documents. It must also handle all customs procedures required for the export of goods and transit through countries where customs procedures are required. The seller bears all risks and costs of transporting the goods from the country of origin to the destination. If the buyer has not specified an agreed location, the seller is free to choose a suitable destination to which he will deliver the goods.

Delivery of goods

The seller must hand over the goods to the buyer or to another person named by the buyer at the agreed date at the chosen location.

Please note that the seller continues to bear all risks of the delivery.

  • Transfer of risk

Unless otherwise stated, the seller bears the risk of loss or damage to the goods up to the designated delivery point.

  • Allocation of costs

The seller has to bear all costs that arise from the delivery of the goods at the agreed place and time, as well as customs duties prior to delivery to the specified place.

  • Notify the buyer

The seller must provide the buyer with sufficient notice of the shipment. You must also provide the buyer with all other information relevant to the delivery of the goods.

  • Proof of delivery and transport documents

The seller must provide the buyer with a bill of lading and the necessary shipping documents at his own expense. And all other relevant documents required receiving the goods at the time of delivery.