Logistics abbreviation ddu delivery means distribution of risks between the supplier and customers. The supplier assumes the risks for cargo services until it arrives at the place of unloading. He will arrange the delivery of the goods to the port or another designated place. Then the buyer disposes of the received cargo.
What does DDU Mean?
What the supplier’s responsibilities include:
- delivery of cargo to the buyer’s country;
- preparation of all necessary accompanying documentation (licenses, rates, fees required for receiving of the goods by the buyer);
- payment of transportation fees and insurance costs during transportation.
Important! If the buyer has not specified the exact place of delivery, the supplier has the right to choose it at its discretion.
What the buyer must do when using ddu shipping:
- make payment on time for the goods;
- obtain import licenses for customs clearance;
- arrive at the place of receipt of the cargo;
- after receiving the goods, assume all risks;
- pay all expenses that will arise from the moment of delivery of the goods to the point of acceptance.
If the buyer for some reason cannot obtain an import license and perform customs formalities, he will be charged with all risks for damage to the cargo or its loss.
What are the Risks of DDU?
The seller assumes the risks of loss or damage to the goods before the specified delivery place. Delivered Duty Paid means that after the cargo arrives at the destination, the risks of its damage and loss become the buyer’s responsibility. The customer is obliged to notify the supplier of the place and time of receipt of the goods. If this requirement is not met, he will not be able to receive the accompanying documentation. So, he will be responsible for all the consequences.
The supplier chooses the forwarder and the type of transport. He decides how the cargo will be delivered by ocean or by air freight.
Advantages and Disadvantages of Delivered Duty Unpaid (DDU)
According to experts, the terms of delivery of ddu freight are beneficial for both buyers and sellers. Each of them will be involved at different stages of the process organization.
1. The terms of delivery are ideal for purchases with a small cost. The supplier will not need to pay high insurance premiums. The buyer will be spared from worrying about the occurrence of problems at one of the stages.
2. Reducing the cost for the buyer. Purchase price does not include taxes, transportation fees, customs duties. You can buy the product at an affordable price, and then pay additional costs. Ddu shipping excludes the presence of administrative fees, they are included in the purchase price.
3. The seller has less responsibility compared to the DDP terms, under which additional obligations arise after unloading at the port. All documentation in the importing country must be issued by the buyer. He is also responsible for the delivery of the cargo to the warehouse.
4. Cooperation of the buyer with logistics companies will help speed up the process of customs clearance under the DDU.
1. The buyer will have a lot of responsibilities after shipment. Although the seller is responsible for the delivery to the sea port, his obligations end immediately after unloading. The customer will have to organize transportation and solve problems with customs.
2. A large amount of documentation that must be provided immediately after the arrival of the cargo at the port. The supplier is obliged to hand over to the customer the documents that will be needed to complete the procedures.
With the consent of the parties, the documents can be transferred with the help EDI (Electronic data exchange).
DDU shipping terms with ARDI Express
ARDI Express company is engaged in the organization of cargo delivery from China for a specific port in the USA. We successfully cooperate with Amazon, and guarantee the optimization of each link in the process. Thanks to the extensive experience in organizing deliveries under DDU conditions, we will help to avoid risks during transportation.
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