1. Different meanings: DDU means duty unpaid delivery, DDP means after-tax delivery;
2. Different expenses: DDU means that the seller shall bear all expenses and risks of transporting the goods to the designated destination except import procedures and customs duties. DDP refers to the goods delivered to the buyer by the seller on the ununloaded shipping tools after handling the import customs clearance procedures at the designated place.
3. Different risks: The buyer shall bear the possible additional costs and risks of DDU. DDP means that the seller bears all risks and expenses of the place where the goods will be shipped.
The above is the difference between DDP and DDU.
Risks of DDP for exporters
DDP and DDU Differences between DDP and DDU trade terms
1. Compared with FOB/C&F, DDP is much more risky for the seller and is the most risky trade term. After shipment, the risk is transferred to the buyer according to FOB or C&F terms. But under DDP, the seller's risk exists until delivery to the customer. If there is any mistake in the goods, the seller needs to pay, so the seller of DDP had better handle the cargo transportation insurance, and if there is any problem, the seller can refer to the insurance company.
2. Compared with FOB/C&F, DDP sellers need to know whether there are any restrictions on the policies of the customs or other government departments of the importing country on such goods, whether certification is required and what the import tariff is. Before arriving at the port of destination, you should first understand the customs and then go through the formalities.
DDPFORWORLD- Professional China international freight forwarder
DDP shipping remains one of the most popular modes of transportation for international businesses as it is popular with buyers. They take less risk until the product is delivered, so it's in their best interest. However, if there are too many problems, the costs associated with the seller's DDP can make it unprofitable.
DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. We do DDP shipping since 2015 by handling home décor, Pet products, battery, power banks, DG cargo, general cargo and Amazon FBA forwarding service. We make your shipping easier and faster by Sea, Air, Express, Truck or Railway. If you run an e-commerce business and want to find a trusted company to provide DDP services to work with, please contact us.
Phone: +86 18682082113
Wechat/Whatsapp: +86 18682082113
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