If you are investigating how your logistics can be managed abroad, you may have come across the terms “DDU” and “DDP” in shipping. In this article of ddpch, we will talk about what they are and the difference between DDP and DDU. If you are importing from China, knowing the difference between these two is of utmost importance.
DDP vs. DDU
The DDU term is the short form of “Delivery Duty Unpaid”, while the term DDP is the short version of the phrase “Delivered Duty Paid”.
Each country has its own set of rules, regulations and import taxes. Those duties and other charges can be charged either by the shipment’s sender or recipient.
Further Reading: Why DDP terms for shipping from China? | Must-Read for Importers
DDP and DDU, both Incoterms as described by the Chamber of Commerce, play key roles in global trade. Here is a quick look at their meanings which include DDP and DDU shipping and other important details.
The Meaning of DDU and DDP in Shipping
DDU payment Incoterms (or unpaid delivery duty) means that the receiver/customer will be notified by customs upon receipt of their shipment and will have to pay certain fees to release the shipment and deliver it to the customer.
DDP payment Incoterms (or customs duties payable) means that the sender is responsible for paying the duties. For certain instances of eCommerce, the retailer performs these tasks at checkout and receives payment for DDP delivery directly from the customer.
Further Reading: Importing from China | What Are the Smartest Choices?
Tips on Using Each for Online Businesses
It is best to regularly communicate what to expect with your customers on your website if your company wants to ship on DDU terms or DDP terms.
Explain how to manage taxes and customs duties:
- On product pages
- At checkout in your shop
- Email Confirmations
- In your shipping policies
- On the FAQ tab of your shop
In conclusion, for retail customers, DDP is ideal as it makes the distribution cycle smooth and error-free.
But let us not exclude DDU from shipping entirely. Import and export companies that operate under license and get a significant number of shipments on a regular basis, actually prefer DDU.
The DDPCH can manage every step of your import process. We are the experts in transportation to the Middle East. And with our years of experience in delivering sea and air freight, express cargos, Amazon FBA, and DDP shipments, we guarantee the fastest and most reliable procedures.