DDU or DDP?

If you are working for international ecommerce business, you must heard of the two main shipping terms, which are DDU and DDP. What’s the true meaning of these two methods? And which one is more suitable to you? Let’s talk about the differences between these two forms and find out the answer from this article.

Explanation of DDU and DDP terms

DDU (Delivery Duty Unpaid) means that the seller delivers the goods to the buyer at the designated destination for disposal without going through the import procedures or unloading the goods from the delivery vehicle, that is, the delivery is completed. In this way, the buyer need to pay the duties.

DDP (Delivery after Duty Paid). Duty Paid Delivery means that the seller completes import customs clearance procedures at the designated destination and delivers the goods that have not been unloaded on the delivery means of transport to the buyer to complete the delivery. If you choose DDP term to ship your parcel, you customer won’t need to pay any duties for what they bought.

What are the risks of DDU and DDP?

DDU (Delivery Duty Unpaid at the Port of Destination), the seller shall bear all risks and costs of transporting the goods to the designated destination, excluding any “taxes and fees” (including The responsibilities and risks of handling customs procedures, as well as the payment of handling fees, duties, taxes and other fees). The buyer must bear this “tax and fee” and the costs and risks caused by the failure to timely import the goods and customs clearance procedures.

DDP (Duty Paid Delivery at the Port of Destination), the seller must bear all risks and costs of transporting the goods to the designated destination, including any “taxes” that should be paid at the destination when customs formalities are required (including customs formalities Liability and risk, as well as payment of handling fees, duties, taxes and other fees).

However, these are the explanations in traditional logistics. If you are a B2C merchant using international logistics, how should you choose these two terms?

How should B2C merchant make a choice of DDU and DDP?

If you are shipping from a warehouse in China to other countries, you will have one more choice–logistic direct line. Due to the sharp increase in the volume of small parcel trade, more and more logistics companies have appeared in China’s logistics market. Most of them can provide services such as customs clearance and tariff prepayment. This brings a lot of convenience to e-commerce sellers.

There are three transportation methods for small parcels ship from China to other countries : postal parcel, express (DHL, UPS, etc.) and logistics direct line. Among them, postal parcels and express delivery are all DDU terms, and most logistics direct lines use DDP terms. If you don’t want your customers to receive a package for which customs duties are to be paid, then the logistics line is the best choice for you.

CFC fulfillment center has more than 10 years experience of DDU and DDP shipping operation. No matter you are looking for sea freight, air freight, and express from China to the world, we can meet your needs. Find more information at https://www.cfulfillmentc.com/