What is the difference between DDU and DPU?
Apr 08, 2024
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1, DDU: Overview of Unpaid Duty Deliveries
DDU, also known as Delivered Duty Unpaid, is an international trade term that refers to the seller handing over the goods to the buyer for disposal at the designated destination, but not handling import procedures or unloading the goods from the delivery vehicle. Under this delivery method, the seller must bear all risks and costs of transporting the goods to the designated destination, 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 renewal fees, tariffs, taxes, and other fees). The buyer needs to bear the import taxes and customs clearance procedures on their own, which increases their responsibility and risk.
2, DPU: Overview of destination unloading
DPU, also known as destination unloading, is another international trade term that refers to the seller unloading the goods from the arriving transportation vehicle at the designated destination and handing them over to the buyer for disposal. Unlike DDU, under the DPU term, the seller is not only responsible for transporting the goods to the destination, but also for unloading the goods from the transportation vehicle. This means that the seller is responsible for safely unloading the goods and ensuring that the goods are in good condition during the unloading process. At the same time, the seller also needs to bear all risks and costs of transporting the goods to the destination, but does not include import taxes and customs clearance procedures. Therefore, under the DPU term, the buyer still needs to handle the import procedures and pay the relevant taxes on their own.
3, The main difference between DDU and DPU
Delivery terms and responsibilities
There is a significant difference in delivery conditions between DDU and DPU. Under the DDU term, the seller only needs to transport the goods to the designated destination and hand them over to the buyer for disposal, without being responsible for unloading. Under the DPU term, the seller not only needs to transport the goods to the destination, but also bears the responsibility of unloading to ensure the safe unloading of the goods. This difference makes the seller's responsibility under DPU terminology more burdensome, while also providing buyers with a more convenient trading experience.
Risk transfer
In terms of risk transfer, both DDU and DPU stipulate that risk is transferred when the goods are delivered to the buyer. However, due to the seller's responsibility for unloading under the DPU term, the risk remains with the seller until the goods are unloaded. This means that under the DPU term, the seller needs to bear greater risk until the goods are safely unloaded and handed over to the buyer.
Cost bearing
In terms of cost sharing, both DDU and DPU require the seller to bear all the costs of transporting the goods to the destination. However, it should be noted that under the DPU term, the seller also needs to bear the unloading costs. This increases the seller's cost under DPU terminology, but also saves the buyer unloading costs. Therefore, when choosing trade terms, both buyers and sellers should consider costs and benefits comprehensively and choose the most suitable trading method for themselves.
DDU and DPU, as common terms in international trade, have significant differences in terms of delivery conditions, risk transfer, and cost sharing. Under the DDU term, the seller's responsibility is relatively light, while under the DPU term, the seller needs to bear more responsibility and risk. Therefore, when choosing which trade term to use, both buyers and sellers should weigh and choose based on specific circumstances and needs to ensure the smooth progress of the transaction and the protection of the interests of both parties. At the same time, it is also necessary to pay attention to complying with international trade rules and laws and regulations to ensure the compliance and smooth progress of transactions
