Do you know the differences between DDP, DDU, DAP?
- Author:sofreight.com
- Source:sofreight.com
- Release Date:2023-12-26
The two trading terms of DDP and DDU are often used in the import and export of the goods, and the exporters may not have a deep understanding of these trade terms, so they often encounter some unnecessary unnecessary during the export of the goods.trouble.So, what are the differences between DDP and DDU, and what are the differences between these two trading terms?
What is DDU?
DDU's English is "Deliveled Duty Unpaid", which is "unprepared delivery (designated destination)".It means that in the actual work process, exporters and importers are delivered somewhere in the importing country.Among them, exporters must bear all expenses and risks to be transported to the designated locations, as well as the costs and risks of customizing customs procedures.
However, it should be noted that it does not include tariffs, tax donations, and other official expenses that need to be paid when importing goods.Importers need to bear the costs and risks that are not able to handle the import and customs process of the goods in time.
Generally speaking, the cost details involved in DDU are still relatively mixed. If this trade term is used, when the importer confirms the price with the goods, it must be allowed to leave a written text and stamp it to avoid the occurrence of the bottom to avoid occurring.Later dispute issues.
What is DDP?
DDP's English is "Delivered Duty Paid", which means "delivery after tax (designated destination)". This delivery method pointed outGive the goods to the importer.
Under this trade term, exporters need to bear all risks in the process of transporting the goods to the specified destination, and they also need to go through the target port and customs clearance procedures, taxes, fees and other expenses.It can be said that the responsibility that sellers need to bear under this trade term are the largest.If the seller cannot obtain the import license directly or indirectly, then this delivery method should be used with caution.
What are the differences between DDU and DDP?
The biggest difference between DDU and DDP is mainly because of the risk and cost of the goods and expenses in the import customs clearance process of goods.If the exporter has the ability to complete the import declaration, then you can choose DDP. If the exporter is unable to handle related matters, or is unwilling to go through the import procedures, take risks and expenses, then the DDU term should be used.
The above is the introduction of some basic definitions between DDU and DDP. In the actual work process, you must choose the appropriate trade term according to your actual work needs to ensure that you can work your own work.Normal completion.
How to calculate the cost of DUU and DDP:
FOB amount. Couple: 1. All Local Charge at the exit port; 2. Marine shipping (whether it is positive or negative) is the CIF amount.If you want DUU: plus the local charger of the destination port, if you want DDP: plus tariffs on the destination port
The difference between DAP and DDU:
DAP (DELIVERED AT PLACE) destination delivery conditions (adding designated destinations) It is a new term in 2010. DDU is the term of 2000 access. There is no DDU in 2010.The terms of DAP are as follows: Destination of destination, this term is suitable for one or more in any transportation method. It refersIt belongs to the seller's delivery, and the seller should bear all the risks of the goods to the specified place.The parties are best to clearly indicate the place where the agreed place is, because the risks of the location are borne by the seller.
A obligation of sellers:
A1 general obligation sellers must provide goods in accordance with the goods in the buying and selling contract, consistent with commercial invoices, and any other evidence that the contract may be required.Any basis mentioned from A1 to A10, if the parties have an agreement or a conventional practice, the electronic records or programs have the same effect.
A2 licenses, approval certificates, security customs clearance and other procedures When the customs clearance procedures are required, the seller must bear the risk and cost at their own risk to obtain any export license or other official approval documents, and handle the export of goods and pass it before delivery.All customs clearance procedures required for any country.
A3 transport and insurance contract
A) The seller of the transportation contract must set up a transportation contract to transport the cargo to the specified destination, or the agreed place (if.)The seller has the right to choose the place where the agreed port or destination is most suitable for delivery.
b) The insurance contract seller does not have the obligation to make a insurance contract for the buyer.However, the seller must ask the buyer's request, and the buyer shall bear the risk and cost (if.), To provide the buyer's information required for insurance.
A4 delivery sellers must transport the goods to the destination designated by the buyer within the agreed date or period, and the goods that will be unloaded on the transportation will be handled by the buyer.
A5 risk transfer sellers bear all the risks of the loss or damage of the goods, until the goods have been delivered in accordance with A4 item, but the loss or damage of the goods in the status in the B5 item is not in this list.
The seller of the A6 cost must pay
a) Except for the costs generated according to the A3 paragraph, all the costs of the goods are until the goods have been delivered in accordance with A4 item, but except for the buyer's payer in the case of B6;
b) The goods are in the destination, and any unloading costs borne by the seller shall be borne by the seller according to the transportation contract;
c) When the customs clearance procedures need to be completed, the customs clearance procedures required for exports, and exports to pay all tariffs, taxes and other expenses, and the cost of the goods during the delivery of the goods before the delivery of A4.
A7 notify the buyer and seller must give the buyer any notice required in order to facilitate the buyer to take ordinary necessary measures to receive the goods.
A8 delivery document seller must provide a document for buyers who can receive the goods in the case of A4/B4.
A9 inspection, packaging, and labeling sellers must pay the cost of inspection (such as inspection quality, measurement, pounds and counting) required for the delivery of the goods in accordance with A4 item, and how to force the inspection before the exporter requests to be forcibly shipped.The seller must pay for the packaging, unless the goods are not packed unless the cargo is required.Unless the buyer has notified the seller's special packaging requirements before the conclusion of the transportation contract, the seller can pack the goods in accordance with the appropriate cargo transportation method, and there should be appropriate marks on the packaging.
The assistance and related expenses of A10 information are applicable, and the seller shall, according to the buyer's request, and the buyer shall bear all costs and risks in a timely manner to provide the buyer or give the buyer as the importer as the import of goods, and (or) the unpaid goods that are not available.Any documents and information needed to the final destination, including security -related information.The seller must compensate the buyer, such as B10, to provide or give assistance to all costs incurred by the documents and information.
B buyer's obligation
B1 general obligation buyers must pay the payment in accordance with the contract.Any basis mentioned from B1 to B10, if the parties agreed or have practice in advance, electronic records or programs have the same effect.
When the B2 license, approval certificate, security customs clearance and other procedures need to go through the customs clearance procedures, the buyer shall bear the risk and expenses at their own risk to obtain any import license or other official approval certificates, and go through all customs clearance procedures for imported goods.
B3 Transportation and Insurance Contract
a) The buyer of the transportation contract does not have the obligation to establish a transportation contract for the seller.
b) The insurance contract buyer does not have the obligation to establish an insurance contract for the seller. The buyer must provide the seller to obtain the information required by the insurance in accordance with the seller's requirements.
B4 receiving goods When the goods are delivered, the buyer must receive the goods when the goods are delivered.
B5 risk transfer buyers have afforded all the risks of the loss or damage of the goods from the situation of the delivery of goods as A4.If A) If the buyer fails to fulfill its obligations in accordance with B2, its burden will cause all risks of loss or damage to the goods; or B) The buyer does not issue a notice in accordance with the B7 item;, To bear all the risks of the loss or damage of the goods, but the goods have clearly identified it as the condition of the contract.
The division of B6 costs must pay A) All expenses related to the goods from the situation of the goods such as A4;
What is DDU?
DDU's English is "Deliveled Duty Unpaid", which is "unprepared delivery (designated destination)".It means that in the actual work process, exporters and importers are delivered somewhere in the importing country.Among them, exporters must bear all expenses and risks to be transported to the designated locations, as well as the costs and risks of customizing customs procedures.
However, it should be noted that it does not include tariffs, tax donations, and other official expenses that need to be paid when importing goods.Importers need to bear the costs and risks that are not able to handle the import and customs process of the goods in time.
Generally speaking, the cost details involved in DDU are still relatively mixed. If this trade term is used, when the importer confirms the price with the goods, it must be allowed to leave a written text and stamp it to avoid the occurrence of the bottom to avoid occurring.Later dispute issues.
What is DDP?
DDP's English is "Delivered Duty Paid", which means "delivery after tax (designated destination)". This delivery method pointed outGive the goods to the importer.
Under this trade term, exporters need to bear all risks in the process of transporting the goods to the specified destination, and they also need to go through the target port and customs clearance procedures, taxes, fees and other expenses.It can be said that the responsibility that sellers need to bear under this trade term are the largest.If the seller cannot obtain the import license directly or indirectly, then this delivery method should be used with caution.
What are the differences between DDU and DDP?
The biggest difference between DDU and DDP is mainly because of the risk and cost of the goods and expenses in the import customs clearance process of goods.If the exporter has the ability to complete the import declaration, then you can choose DDP. If the exporter is unable to handle related matters, or is unwilling to go through the import procedures, take risks and expenses, then the DDU term should be used.
The above is the introduction of some basic definitions between DDU and DDP. In the actual work process, you must choose the appropriate trade term according to your actual work needs to ensure that you can work your own work.Normal completion.
How to calculate the cost of DUU and DDP:
FOB amount. Couple: 1. All Local Charge at the exit port; 2. Marine shipping (whether it is positive or negative) is the CIF amount.If you want DUU: plus the local charger of the destination port, if you want DDP: plus tariffs on the destination port
The difference between DAP and DDU:
DAP (DELIVERED AT PLACE) destination delivery conditions (adding designated destinations) It is a new term in 2010. DDU is the term of 2000 access. There is no DDU in 2010.The terms of DAP are as follows: Destination of destination, this term is suitable for one or more in any transportation method. It refersIt belongs to the seller's delivery, and the seller should bear all the risks of the goods to the specified place.The parties are best to clearly indicate the place where the agreed place is, because the risks of the location are borne by the seller.
A obligation of sellers:
A1 general obligation sellers must provide goods in accordance with the goods in the buying and selling contract, consistent with commercial invoices, and any other evidence that the contract may be required.Any basis mentioned from A1 to A10, if the parties have an agreement or a conventional practice, the electronic records or programs have the same effect.
A2 licenses, approval certificates, security customs clearance and other procedures When the customs clearance procedures are required, the seller must bear the risk and cost at their own risk to obtain any export license or other official approval documents, and handle the export of goods and pass it before delivery.All customs clearance procedures required for any country.
A3 transport and insurance contract
A) The seller of the transportation contract must set up a transportation contract to transport the cargo to the specified destination, or the agreed place (if.)The seller has the right to choose the place where the agreed port or destination is most suitable for delivery.
b) The insurance contract seller does not have the obligation to make a insurance contract for the buyer.However, the seller must ask the buyer's request, and the buyer shall bear the risk and cost (if.), To provide the buyer's information required for insurance.
A4 delivery sellers must transport the goods to the destination designated by the buyer within the agreed date or period, and the goods that will be unloaded on the transportation will be handled by the buyer.
A5 risk transfer sellers bear all the risks of the loss or damage of the goods, until the goods have been delivered in accordance with A4 item, but the loss or damage of the goods in the status in the B5 item is not in this list.
The seller of the A6 cost must pay
a) Except for the costs generated according to the A3 paragraph, all the costs of the goods are until the goods have been delivered in accordance with A4 item, but except for the buyer's payer in the case of B6;
b) The goods are in the destination, and any unloading costs borne by the seller shall be borne by the seller according to the transportation contract;
c) When the customs clearance procedures need to be completed, the customs clearance procedures required for exports, and exports to pay all tariffs, taxes and other expenses, and the cost of the goods during the delivery of the goods before the delivery of A4.
A7 notify the buyer and seller must give the buyer any notice required in order to facilitate the buyer to take ordinary necessary measures to receive the goods.
A8 delivery document seller must provide a document for buyers who can receive the goods in the case of A4/B4.
A9 inspection, packaging, and labeling sellers must pay the cost of inspection (such as inspection quality, measurement, pounds and counting) required for the delivery of the goods in accordance with A4 item, and how to force the inspection before the exporter requests to be forcibly shipped.The seller must pay for the packaging, unless the goods are not packed unless the cargo is required.Unless the buyer has notified the seller's special packaging requirements before the conclusion of the transportation contract, the seller can pack the goods in accordance with the appropriate cargo transportation method, and there should be appropriate marks on the packaging.
The assistance and related expenses of A10 information are applicable, and the seller shall, according to the buyer's request, and the buyer shall bear all costs and risks in a timely manner to provide the buyer or give the buyer as the importer as the import of goods, and (or) the unpaid goods that are not available.Any documents and information needed to the final destination, including security -related information.The seller must compensate the buyer, such as B10, to provide or give assistance to all costs incurred by the documents and information.
B buyer's obligation
B1 general obligation buyers must pay the payment in accordance with the contract.Any basis mentioned from B1 to B10, if the parties agreed or have practice in advance, electronic records or programs have the same effect.
When the B2 license, approval certificate, security customs clearance and other procedures need to go through the customs clearance procedures, the buyer shall bear the risk and expenses at their own risk to obtain any import license or other official approval certificates, and go through all customs clearance procedures for imported goods.
B3 Transportation and Insurance Contract
a) The buyer of the transportation contract does not have the obligation to establish a transportation contract for the seller.
b) The insurance contract buyer does not have the obligation to establish an insurance contract for the seller. The buyer must provide the seller to obtain the information required by the insurance in accordance with the seller's requirements.
B4 receiving goods When the goods are delivered, the buyer must receive the goods when the goods are delivered.
B5 risk transfer buyers have afforded all the risks of the loss or damage of the goods from the situation of the delivery of goods as A4.If A) If the buyer fails to fulfill its obligations in accordance with B2, its burden will cause all risks of loss or damage to the goods; or B) The buyer does not issue a notice in accordance with the B7 item;, To bear all the risks of the loss or damage of the goods, but the goods have clearly identified it as the condition of the contract.
The division of B6 costs must pay A) All expenses related to the goods from the situation of the goods such as A4;