Delivery Duty Unpaid
Delivery Duty Unpaid (DDU) was a former Incoterm used to describe a situation where the seller delivered goods to the buyer’s country without paying import duties, taxes, or customs charges. Under this term, the seller handled export processes and transportation up to the agreed destination. However, once the goods arrived, the buyer became responsible for customs clearance and all import-related costs. This made cost planning essential for buyers receiving goods under DDU.
Although DDU is no longer an official Incoterm, many businesses still use the term informally. Its modern replacement is DAP (Delivered at Place), which works similarly: the seller delivers the goods to the named place, but the buyer pays import duties. The shift to DAP helps standardize global trade terms and reduce confusion. However, the practical responsibilities remain largely the same.
DDU arrangements can be convenient for sellers since they don’t need to manage complex import processes in foreign countries. For buyers, it offers predictable delivery but comes with the responsibility of completing local customs procedures. This includes paying duties, arranging inspections, and ensuring compliance with regulations. Good preparation helps avoid delays at arrival.
Overall, understanding DDU is useful for interpreting older contracts or trade practices. Even though DAP is the current standard, many logistics teams still reference DDU in everyday communication. Knowing what it covers helps both buyers and sellers stay clear on responsibilities, costs, and the final steps required to complete delivery.
Frequently Asked Questions about Delivery Duty Unpaid
Clear answers to the most common questions people have when learning about Delivery Duty Unpaid.
No. DDU was removed from the Incoterms list in 2010, but some businesses still use it informally. The closest modern equivalent is DAP.
The buyer pays all import duties, taxes, customs fees, and any charges arising after goods arrive in the destination country.