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What is the difference between DDP, DDU, and DAP?
- Categories:Industry dynamics
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- Time of issue:2019-06-03
(Summary description)DDU's English is "Delivered Duty Unpaid", which is "unpaid delivery (designated destination)". This trade term refers to the delivery of goods by exporters and importers somewhere in the importing country during the actual course of work, in which the exporter must bear all costs and risks of transporting the goods to the designated location, as well as handling Customs formalities costs and risks.
What is the difference between DDP, DDU, and DAP?
(Summary description)DDU's English is "Delivered Duty Unpaid", which is "unpaid delivery (designated destination)". This trade term refers to the delivery of goods by exporters and importers somewhere in the importing country during the actual course of work, in which the exporter must bear all costs and risks of transporting the goods to the designated location, as well as handling Customs formalities costs and risks.
- Categories:Industry dynamics
- Author:
- Origin:
- Time of issue:2019-06-03
Information
First, what is DDU?
DDU's English is "Delivered Duty Unpaid", which is "unpaid delivery (designated destination)". This trade term refers to the delivery of goods by exporters and importers somewhere in the importing country during the actual course of work, in which the exporter must bear all costs and risks of transporting the goods to the designated location, as well as handling Customs formalities costs and risks. However, it is important to note that the customs fees, taxes, and other official fees that are required to pay for the import of goods are not included here. The importer is required to handle additional costs and risks due to the inability to process the import clearance process for the goods in a timely manner.
In general, the cost details involved in DDU are still relatively complicated. If you use this trade term, the importer must leave the written text on the other party when the price is confirmed with the freight forwarder, and the seal should be left to avoid the occurrence. Late disputes.
Second, what is DDP?
The English word for DDP is “Delivered Duty Paid”, which means “delivery after tax (designated destination)”. This type of delivery means that the exporter has completed the import clearance process at the destination designated by the import and export parties. Deliver the goods to the importer.
Under this trade term, the exporter is responsible for all risks in transporting the goods to the designated destination, as well as customs clearance at the port of destination, taxes, fees and other fees. It can be said that under this trade term, the seller has the greatest responsibility. If the seller cannot obtain an import license directly or indirectly, then the term should be used with caution.
Three，What are the differences between DDU and DDP?
The biggest difference between DDU and DDP is mainly the question of who bears the risks and expenses of the goods in the customs clearance process. If the exporter has the ability to complete the import declaration, then DDP can be chosen. If the exporter is not able to handle the relevant matters, or is unwilling to go through the import formalities, bear the risks and expenses, then the DDU term should be used.
The above is some basic definitions and differences between DDU and DDP. In the actual work process, exporters must choose the appropriate trade terms according to their actual work needs, so as to ensure their own work. The normal completion.
How to calculate the DUU and DDP costs:
Fob amount. Plus: 1. All local charge at the export port 2. The sea freight (whether positive or negative) is the cif amount. If you want ddu: plus the local charge of the destination port, if you want ddp: plus the purpose Port tariff
The difference between DAP and DDU:
DAP (Delivered at Place) Destination delivery conditions (additional specified destination) It is a new term for the 2010 General Rules. DDU is the terminology of the 2000 General Rules. There is no DDU in 2010. The terms of the DAP are as follows: Destination Delivery This term applies to one or more of any modes of transport, which means that, at the specified destination, when the goods on the arriving means of transport are to be unloaded by the buyer, Delivery by the seller, the seller bears all risks of transporting the goods to the designated place. It is advisable for the parties to clearly state the location within the agreed destination, as the risk to the location is borne by the seller.
A Seller’s obligations:
A1 General Obligations The seller must provide evidence of compliance with the goods in the sale contract and the corresponding commercial invoice, as well as any other evidence of compliance that may be required by the contract. Any document referred to in items A1 to A10, if agreed or customary, has an equivalent effect on electronic records or procedures.
A2 Permit, Approval Certificate, Safety Clearance and Other Procedures When customs clearance is required, the seller must be responsible for the risks and expenses to obtain any export license or other official approval documents, and handle the export of the goods and pass it before delivery. All customs clearance procedures required for transportation in any country.
A3 Transportation and insurance contract b) Transport contract The seller must enter into a contract of carriage at his own expense to transport the goods to the designated destination or at the agreed place (if any) at the specified destination, if the specific location is not agreed, or cannot be If the practice is determined, the seller has the right to choose to deliver at the place where the agreed destination or destination is best suited to its intended purpose. c) Insurance contract The seller has no obligation to enter into an insurance contract for the purchase of a house. However, the seller must respond to the buyer's request and the buyer bears the risks and expenses (if any) to provide the information the buyer needs to obtain insurance.
A4 Delivery The seller must have D placed the goods on the arriving means of transport on the agreed destination (if any) at the specified date (if any) for the unloaded goods to be disposed of by the buyer.
A5 Risk Transfer The seller bears all risks of loss of or damage to the goods until the goods have been delivered in accordance with item A4, but the loss or damage of the goods in the conditions stated in item B5 is not included here.
A6 Division of costs The seller must pay a) except for the expenses incurred in accordance with A3 a), all costs relating to the goods until the goods have been delivered in accordance with item A4, but in the case of case B6, they shall be paid by the buyer. Except; b) the goods at the destination, any unloading charges borne by the seller in accordance with the contract of carriage; c) the customs clearance fees required for export, and all customs duties, taxes and other expenses incurred for export when customs clearance is required And the cost of shipping the goods through any country prior to delivery in accordance with item A4.
A7 Notifying the Buyer The seller must give the buyer any notice necessary to enable the buyer to take the usual necessary measures to receive the goods.
A8 Delivery Documents The seller must provide at his own expense the documents that the buyer can receive the goods in the case of A4/B4.
A9 Inspection, Packaging, Labeling The seller must pay for the inspections required to deliver the goods in accordance with item A4 (such as inspection quality, measurement, weighing and counting) and how the exporting country requires mandatory pre-shipment inspection. The seller must use the packaged goods at his own expense, unless the goods are not packed as usual. Unless the buyer has notified the seller of the special packaging requirements before entering into the contract of carriage, the seller is able to pack the goods in accordance with the appropriate means of shipment and the packaging should be properly labeled.
A10 Information Assistance and related fees Where applicable, the seller shall, at the request of the buyer, bear all costs and risks, and provide or provide to the buyer in a timely manner to obtain the buyer’s import, and/or no goods. Any documents and information needed to ship to your final destination, including safety-related information. The seller must compensate the buyer for all costs incurred by the buyer or assisted by the buyer in obtaining the documents and information in case of item B10.
B Buyer’s obligations
B1 General Obligations The buyer must pay the purchase price in accordance with the contract. Any document referred to in items B1 through B10 shall have the same effect if the parties have previously agreed or have a customary practice. B2 Permit, Approval Certificate, Safety Clearance and Other Procedures When customs clearance is required, the buyer shall bear the risks and expenses to obtain any import license or other official approval certificate, and handle all customs clearance procedures for the import of goods.
B3 Transportation and insurance contract a) Transport contract The buyer has no obligation to enter into a contract of carriage with the seller. b) Insurance contract The buyer has no obligation to enter into an insurance contract with the seller. The buyer must provide the information required by the seller to obtain insurance at the seller's request.
B4 Receiving goods When the goods are delivered in the case of item A4, the buyer must receive the goods.
B5 Risk Transfer The buyer shall bear all risks of loss of or damage to the goods from the time the goods are delivered as in case A4. If a) if the buyer fails to perform its obligations under subparagraph B2, then the burden will incur all risks of loss of or damage to the goods; or b) the buyer fails to give notice in accordance with item B7; then from the date of expiration of the agreed delivery date or period To bear all risks of loss of or damage to the goods, but on the condition that the goods have clearly identified the goods as the contract.
B6 Division of costs The buyer must pay a) all costs relating to the goods from the time the goods are delivered as in case A4; b) the means of transport arriving at the designated destination is the receiving goods.
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