Introduction to Delivered Duty Unpaid (DDU)
- DDU is a sort of foreign trade in which the seller succeeds in his duty to ensure the safe delivery of all the goods or services to a predetermined location, pay all the relevant shipping costs, and bear all the risks during shipping apart from the duty once it reaches the port.
- When the goods or services get to the last stop as agreed upon, the buyer becomes answerable for ensuring the customer's payment and other duties. If they fail, he will bear the consequences. The seller assumes the cost and risks related to the supplying of goods to the delivery location.
Understanding Delivered Duty Unpaid (DDU)
The International Chamber of Commerce (ICC) was initially formed after World War I to promote wealth in Europe by creating standards for international trade.
Incoterms are contract stipulations that outline who bears the costs and risks of international transactions. These are subject to changes at the responsibility of the ICC. Due to the legal and logistical intricacies, the ICC wants to simplify matters for businesses by standardising its terms.
Seller's Responsibilities
- Presents the goods and commercial documents as needed by the sales contract.
- Arranges for export clearance and all other export formalities.
- Arranges and pays for all the costs for transporting the goods up to the named place of destination.
- Assumes all risk to the goods upto the point made available to the buyer at the named place of destination.
- Seller has to present the buyer with transport documents that will enable the buyer to take possession of the goods at the designated place of destination.
Buyer's Responsibilities
- Buyer has to pay for the goods as per the sales contract
- Buyers must collect all the commercial documentation, licenses, and authorizations needed for import and arrange for import clearance and formalities at their own risk and cost.
- Buyer takes the delivery of the goods after being delivered by the seller to the specified place of destination.
- Buyer must understand all risks for the goods from when the goods have been made available at the named place of destination.
- Buyer pays for all transportation costs, import customs formalities and duty fees, and other formalities and charges associated with the transportation of the shipment from the time the goods have been made available at the specified place of destination.
