Land transportation

  • The difference between DDP, DDU and DAP

    ●What is DDU?
    DDU (Delivered Duty Unpaid), that is, unpaid delivery (designated destination). In the actual working process, the exporter and the importer deliver the goods somewhere in the importing country, in which the exporter must bear all the costs and risks of delivering the goods to the designated place, as well as the costs and risks of going through customs procedures . Under the DDU conditions, customs duties, taxes and other official fees that need to be paid when the goods are imported are not included. The importer needs to deal with the additional costs and risks caused by the failure to handle the import customs clearance process of the goods in time.
     
    What is DDP?
    DDP (Delivered Duty Paid), means delivery after duty paid (designated destination), this delivery method means that the exporter will deliver the goods to the importer after completing the import customs clearance procedures at the destination designated by the importer and exporter. business. Under the terms of DDP, the exporter needs to bear all the risks in the process of transporting the goods to the designated destination, and also needs to go through customs clearance procedures at the destination port, and pay taxes, handling fees and other fees. As far as DDP is concerned, the seller needs to bear the greatest responsibility. If the seller cannot directly or indirectly obtain an import license, it is recommended to carefully consider whether to use DDP.
     
    What are the differences between DDU and DDP?
    The biggest difference between DDU and DDP mainly lies in the question of who will bear the risks and expenses during the import customs clearance process of the goods at the port of destination. If the exporter has the ability to complete the import declaration, then he can choose DDP. If the exporter has no ability to handle related matters, or is unwilling to go through import procedures, bear risks and costs, then he should use DDU.
     
    How to calculate DDU and DDP fees:
    DDU: export port fee + sea freight + destination port fee (excluding destination port tariff)
    DDP: export port fee + sea freight + destination port fee + destination port tariff
     
    The difference between DAP and DDU:
    DAP (Delivered at Place) is a new term in Incoterm 2010, DDU is a term in Incoterm 2000, and Incoterm 2010 has no DDU. The terms of DAP agree: Delivery at destination This term applies to one or more of any mode of transportation, and refers to delivery by the seller when the goods ready to be unloaded on the arriving means of transport are placed at the buyer's disposal at the designated destination. , the seller bears all risks of delivery of the goods to the named place. It is best for the buyer and the seller to clearly specify the location within the agreed destination, because the risk to that location is borne by the seller. It is generally recognized in the industry that DAP is almost equivalent to DDU.