DDU, in trade terms, is Delivered Duty Unpaid, commonly used in international import and export trade, meaning "unpaid delivery". This means that the seller directly consigns the goods to the designated address of the importing buyer in China, while also being responsible for all the costs and risks of shipping the products to the designated address (excluding other customer fees, import tariffs, and taxes that should be paid during import).
DDU precautions:
1. Is import customs clearance convenient: Under DDU delivery conditions, the seller is obligated to transport the goods to the agreed destination in the importing country and actually deliver them to the buyer. However, the customs clearance procedures and import taxes for the import of goods are not borne by the seller, but by the buyer. This is suitable for trade between some free trade zones and countries with relevant tax alliances. If the importing country is a country with difficult and time-consuming customs clearance, sometimes the buyer cannot complete the customs clearance procedures in a timely and smooth manner. In this case, requiring the seller to bear the obligation to deliver the goods on time at the destination will have certain risks.
Therefore, before using DDU in export business, the seller should first understand the customs management situation of the importing country. If it is expected that import clearance will encounter difficulties, the DDU 2000 General Rules should not be used. If both parties agree that the seller shall bear the risk and cost of import clearance of the goods, it must be clearly stated in the contract.
2. Good handling of insurance matters: According to the "General Principles", if a transaction is made under DDU conditions, the seller has no obligation to enter into an insurance contract because DDU belongs to actual delivery, and the risk before delivery is borne by the seller. Whether an insurance contract is signed or not is not related to the buyer. However, due to various risks in international trade, especially when using DDU, the seller is responsible for transporting the goods from the exporting country to the final destination in the importing country, There are many links and long-distance transportation involved in this process, and there is a high possibility of losses caused by disasters or accidents in the goods. Therefore, the seller should transfer the risk through insurance.
3. Generally, DDU is done by exporters who have a company overseas and are engaged in business activities. Exporters are responsible for delivering goods to customers without providing any customs clearance documents or certificates.
