Do you understand the difference between DDP, DDU, and DAP?

 

DDU in English is "Delivered Duty Unpaid". This trade term means that in the actual process of work, the exporter and importer in the importing country of a place for the delivery of goods, in which the exporter must bear all the costs and risks of goods delivered to the designated place, as well as the costs and risks of customs formalities. However, it is important to note that this does not include customs duties, taxes and other official fees that have to be paid at the time of importation of the goods. The importer has to deal with the additional costs and risks arising from the failure to clear the goods in time.
Generally speaking, DDU costs involved in the details are still relatively miscellaneous, if the use of this trade term, importers and freight forwarders to confirm the price, be sure to let the other party to leave a written text, and stamped to avoid disputes in the later stage of the problem.

 

DDP means "Delivered Duty Paid (Designated Destination)", which means that the exporter will hand over the goods to the importer after completing the formalities of import customs clearance at the destination designated by both the importing and exporting parties.
In this trade term, the exporter needs to bear all the risks in the process of delivering the goods to the designated destination, and also needs to handle the customs clearance procedures at the port of destination, and pay taxes, fees and other costs. It can be said that under this kind of trade terms, the seller needs to bear the greatest responsibility. If the seller is unable to obtain an import license directly or indirectly, then it should still be careful to use this terminology.

 

The biggest difference between DDU and DDP lies mainly in the question of who actually bears the risks and expenses during the import customs clearance process of the goods at the port of destination. If the exporter has the ability to complete the import customs clearance, then you can choose DDP, if the exporter does not have the ability to deal with the relevant matters, or is not willing to deal with the import procedures, bear the risks and costs, then you should use the DDU terminology.

The above are some basic definitions and differences between DDU and DDP, in the actual work process, exporters must be based on their actual work needs, choose the right trade terms, so as to ensure the normal completion of their work.
 

How to calculate the DDU and DDP fees？

 

Fob amount .

Add: 1, all the local charge of the export port

         2, ocean freight (whether positive or negative) is the cif amount If you want ddu:

         add the local charge of the destination port If you want ddp: add the tariff of the destination port

 

Difference between DAP and DDU.
DAP (Delivered at Place) It is a new term of 2010 General Conditions, DDU is a term of 2000 General Conditions, and there is no more DDU in 2010. The terms of DAP are agreed as follows: Delivered at Place This term applies to one or more of any modes of transportation, and refers to the handing over of goods to be unloaded on the arriving conveyance to the named destination, and the delivery of goods to be unloaded on the arriving conveyance. This term applies to one or more of the modes of transportation and means that the goods are delivered at the named place of destination when they are placed at the buyer's disposal on the arriving conveyance ready to be unloaded, and the seller bears all risks of their transportation to the named place. It is desirable that the parties clearly indicate the place within the agreed destination, since the risk of transportation to that place is borne by the seller.

 

A. Obligations of the Seller.

 

A1. General Obligations The seller shall be required to provide commercial invoices for goods and conformity with the contract of sale and any other evidence of conformity that may be required by the contract. Any documents referred to in items A1 to A10 shall be equally effective if the parties have agreed or it is customary to use electronic records or programs.

 

A2. Licenses, Approvals, Secure Customs Clearance and Other Formalities Where customs clearance is required, the seller must, at his own risk and expense, obtain any export licenses or other official approvals and carry out all customs formalities necessary for the exportation of the goods and their transit through any country prior to delivery.

 

A3. Transportation and Insurance Contracts

a) .The seller must at its own expense enter into a contract of carriage for the carriage of the goods to the named place of destination, or to an agreed place (if any) at the named place of destination, and if such particular place is not agreed upon or cannot be determined in accordance with practice, the seller shall have the right to choose to deliver the goods at the place at the agreed destination or place of destination which is most suitable for the purpose for which the goods are intended.

b) .Insurance Contract The seller is not obliged to enter into an insurance contract for the purchase of the property. However, the seller must, at the buyer's request and at the buyer's risk and expense (if any), provide the buyer with such information as the buyer may require in order to obtain insurance.

 

A4. Delivery The seller must place the goods at the disposal of the buyer on the agreed date or within the agreed period of time at the named destination (if any) on the arriving means of transportation ready for unloading.

 

A5. Transfer of Risk The seller bears all risk of loss or damage to the goods until they have been delivered in accordance with item A4, except in the case of loss or damage to the goods in the condition set out in item B5.

 

A6. Division of costs The seller must pay

(a). All costs relating to the goods, other than those incurred in accordance with paragraph A3, until the goods have been delivered in accordance with paragraph A4, unless they are payable by the buyer in the case of paragraph B6;

(b). Any unloading costs of the goods at the place of destination which are to be borne by the seller in accordance with the contract of carriage;

(c). when customs clearance is required, the cost of customs clearance for export, and all duties, taxes and other charges payable on export, and the cost of transportation of the goods through any country prior to delivery in accordance with Item A4.

 

A7. Notice to buyer The seller must give the buyer any notice required to enable the buyer to take such steps as are usually necessary to take delivery of the goods.

 

A8. Documents of delivery The seller must provide at his own expense such documents as will enable the buyer to take delivery of the goods as in the case of A4/B4.

 

A9. Inspection, packing, marking The seller must pay the cost of inspections (e.g. checking for quality, measuring, weighing and counting) required for delivery of the goods in accordance with A4, as well as the cost of mandatory pre-shipment inspections required by the exporting country, if any. The seller must pack the goods at his own expense, unless it is customary not to do so. Unless the buyer has notified the seller of special packing requirements before the conclusion of the contract of carriage, the seller may pack the goods in a manner suitable for the carriage of the goods, which shall be properly labeled.

 

A10 Assistance with Information and Related Costs Where applicable, the seller shall, at the buyer's request and at the buyer's expense and risk, furnish or give the buyer, in a timely manner, any documents and information, including security-related information, that the buyer requires for the importation of the goods and/or for the non-transportation of the goods to the final destination. The seller shall reimburse the buyer for all costs incurred by the buyer in providing or giving assistance in obtaining documents and information as in the case of B10.

 

B. Obligations of the buyer

 

B1. General Obligations The buyer must pay for the goods as agreed in the contract. Any documents referred to in items B1 to B10 shall have the same force and effect as electronic records or programs if the parties have agreed upon them in advance or if it is customary to do so.

 

B2. Licenses, Certificates of Approval, Secure Customs Clearance and Other Formalities When customs clearance is required, the buyer obtains at his own risk and expense any import licenses or other official certificates of approval and carries out all customs formalities for the importation of the goods.

 

B3. Transportation and Insurance Contracts
The buyer has no obligation to the seller to enter into a contract of carriage.

The buyer is not obliged to the seller to enter into an insurance contract, but the buyer must provide the seller with the information necessary for the seller to obtain insurance as requested by the seller.

 

B4. Acceptance of the goods The buyer has to accept the goods when they are delivered as per A4.

 

B5. Transfer of risk The buyer shall bear all risks of loss or damage to the goods from the time they are delivered as per A4. The risk of loss or damage shall pass to the buyer if

a) the buyer fails to fulfill his obligations in accordance with item B2, he bears all risks of loss of or damage to the goods as a result; or

b) the buyer fails to give notice in accordance with item B7; he bears all risk of loss or damage to the goods from the agreed delivery date or from the expiry of the time limit, provided that the goods have been clearly identified as the goods of the contract.

 

B6. Division of costs The buyer must pay

(a) All costs relating to the goods from the time they are delivered as in A4;

(b) all costs incurred in taking delivery of the goods by the means of transportation arriving at the named place of destination.