Glossary
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Delivery Duty Unpaid (DDU)

Delivery Duty Unpaid (DDU)

Delivery Duty Unpaid (DDU) is an Incoterm indicating that the seller is responsible for delivering the goods to the buyer's destination, excluding import duties and taxes.

Delivered Duty Unpaid (DDU) is an old incoterm in international trade, indicating that the seller bears the responsibility for safely delivering goods to a specified destination, covering all transportation expenses and assuming risks during transit.

Upon arrival at the agreed-upon location, the buyer takes over the responsibility for paying import duties and additional transportation costs. While DDU is still commonly used in transportation contracts, the International Chamber of Commerce (ICC) has officially replaced it with Delivered-at-Place (DAP).

Under DDU arrangements, the seller handles the necessary licenses and export formalities, covering costs in transit countries and providing an invoice at its expense. The seller carries all risks until the goods reach the specified location but is not obligated to secure insurance.

On the other hand, the buyer is tasked with obtaining import licenses, paying taxes, duties, and inspection costs. All risks associated with this process become the buyer's responsibility. Once the goods are available to the buyer, they assume all subsequent transportation costs and risks.

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