What is Delivered Duty Unpaid (DDU)?

Delivered duty unpaid (DDU)  was an Incoterms 2000 rule used in shipping where the seller agrees to deliver goods to a named place in the destination country and covers all shipping costs and risks up to that point. 

DDU has since been replaced by Delivered at Place (DAP). While both have very similar meanings, DAP removes ambiguity around named place requirements and unloading responsibilities that existed under DDU. For example, DAP makes it clear the buyer is responsible for unloading.   

Under DDU shipping terms, once the goods arrive at the named destination country, the buyer is responsible for all import duties, taxes, customs clearance, unloading, and final delivery to their own facility.

DDU shipping means sellers do not have to typically handle complex import procedures in the destination country. Instead, buyers usually manage local customs and associated costs.

• Seller: Delivers goods to the named destination, takes care of export licenses and loading, and assumes responsibility for transport risks until delivery.

• Buyer: Pays for goods, import duties, and taxes, handles customs clearance, and arranges and assumes risk for unloading and final delivery. 

The replacement of DDU with DAP in Incoterms 2010 made it clear that the seller must deliver goods ready for unloading, transferring risk to the buyer at that point. 

DAP shipping typically gives the buyer more control over the import process, including cost visibility, compliance, and inventory planning. This may be especially useful when the buyer understands their country’s customs rules and wants to avoid hidden markups. 

On the other hand, Delivered Duty Paid (DDP) shifts all customs responsibilities, transportation costs, and risks to the seller, providing a smoother buyer experience. This may be preferred in areas such as e-commerce where buyers expect a frictionless experience.

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