What is DDU in air freight?

1, DDU Concept Analysis
DDU, also known as Delivered Duty Unpaid, is an international trade term used to describe the delivery method in which the seller hands over the goods to the buyer for disposal at a designated destination. Under the DDU term, the seller is responsible for transporting the goods to the designated destination and bears the risks and expenses during transportation, but does not include any "taxes" that should be paid when importing in the destination country when customs procedures are required (including the responsibility and risk of handling customs procedures, as well as paying handling fees, tariffs, taxes, and other fees). In short, DDU requires the seller to safely transport the goods to the destination, but the buyer is responsible for the import taxes and customs clearance procedures on their own.
In air transportation, the term DDU is particularly widely used. Due to the characteristics of fast speed and strong timeliness of air transportation, the DDU term can ensure that the seller delivers the goods to the destination within the specified time, while reducing the seller's burden on import taxes and customs clearance procedures.
2, DDU operation mode
In air freight DDU transactions, the seller and buyer are required to follow the following operating methods:
The seller is responsible for arranging the transportation of the goods, including selecting an airline, booking cabin space, arranging shipment, etc., to ensure that the goods are transported to the designated destination on time and safely.
The seller shall bear the risks and expenses during the transportation of the goods, such as air freight, insurance fees, etc. The seller shall be responsible for handling any loss or damage to the goods during transportation.
After the goods arrive at the destination, the seller shall promptly notify the buyer and assist the buyer in completing the receipt and acceptance of the goods.
The buyer is responsible for handling import procedures at the destination and paying relevant taxes and fees. This includes declaring to customs, paying customs duties, value-added tax, and completing other necessary import procedures.
3, The impact and significance of DDU
The DDU term in air transportation has had a profound impact on both buyers and sellers and related parties:
For the seller, the DDU term reduces their burden in terms of import taxes and customs clearance procedures. The seller only needs to safely transport the goods to the destination without worrying about import taxes and customs clearance issues, so that they can focus more on the transportation of the goods themselves, improve transportation efficiency and quality.
For buyers, the DDU term means they need to bear the import taxes and handle customs clearance procedures themselves. This requires the buyer to have certain import knowledge and experience in order to successfully complete the relevant procedures. At the same time, buyers also need to pay attention to changes in import taxes and policy adjustments to ensure compliant operations.
The term DDU also holds significant importance for the entire air transportation industry. It promotes the healthy development of the international air freight market and improves the transparency and predictability of cargo transportation. By clarifying the responsibilities and obligations of both parties, DDU can help reduce trade disputes and transaction risks, and promote the smooth progress of international trade.