Trade Terms
DDP and DDU/DAP
Explanation of Tariffs
DDP is the most hassle-free delivery method for the buyer.
Under DDP terms,all costs and procedures during transportation are the responsibility of the seller,including:
International freight
Customs clearance in the destination country
Tariffs, Value Added Tax (VAT) and other fees
Delivery to the final address
In other words,the buyer does not need to pay any additional fees upon receiving the goods,the seller is fully responsible.
DDU is an earlier term, now mainly corresponding toDAP。
Its meaning is: the seller is responsible for delivering the goods to the buyer's country, butis not responsible for customs clearance and taxes.。
Under DDU/DAP terms:
the seller is responsible for transportation to the destination country,
the buyer needs to clear customs on their own,
the buyer needs to pay tariffs, VAT, handling fees, etc.
Customs clearance documents, tax numbers, etc. are to be provided by the buyer.
Therefore, after the goods arrive in the destination country, the buyer may receive a courier or customs notification requiring payment of taxes for release.