What does DDU mean? What does DDU mean for ocean freight?

If you want to do export trade, it is best to master a spoken language, such as English is the most commonly used. Secondly, you must understand some trade terms so that the trade can proceed smoothly. So what does DDU mean?

What does DDU mean?

1. DDU means delivered duty unpaid.

2. DDU means that the seller must bear all costs and risks of transporting the goods to the designated destination except import procedures and tariffs. DDU means that the buyer must bear the additional costs and risks that may occur due to his failure to handle import customs clearance in time.

3. Compared with FOB/C&F, DDP poses much greater risks to the seller and can be said to be the most risky trade term.

4. Under FOB or C&F, the risk is transferred to the buyer when the goods are loaded on board the vessel.

5. However, under DDP, the seller’s risk continues until the goods are delivered to the customer.

6. If there are any errors in the goods, the seller will have to pay for it.

7. Therefore, for sellers doing DDP, it is best to purchase cargo transportation insurance so that they can contact the insurance company if any problems arise.

8. Basic obligations of buyers and sellers: The seller must sign a transportation contract and pay the freight incurred in transporting the goods to the designated port or destination transportation terminal; delivery is completed when the goods that comply with the contract are unloaded from the arriving means of transport at the designated port or destination transportation terminal and handed over to the buyer for disposal; the seller must give the buyer the necessary notice so that the buyer can take measures normally required to collect the goods.

9. Bear all risks and costs (including insurance premiums) before delivery at the transport terminal; obtain at its own risk and expense the license or other official authorization required for export, and handle all customs procedures required for the export of goods and transit transportation through other countries before delivery; provide commercial invoices and certificates or equivalent electronic information for the buyer to receive the goods.

10. The buyer shall bear all risks and costs after delivery at the transport terminal; obtain the required import license or other official authorization at its own risk and expense, and handle all customs formalities required for the import of goods; collect the goods, accept the delivery certificate and pay the price as agreed in the contract.

Generally speaking, DDU means Delivery Duty Unpaid, which means the buyer delivers the goods without completing the import formalities or unloading the goods from the means of transport.