When shipping internationally, two terms (Incoterms) that frequently come up are DDU and DDP. Understanding the difference between them is crucial because it determines who is responsible for additional costs and customs procedures when the package arrives in the destination country.
What is DDU (Delivered Duty Unpaid)?
Under the DDU scheme, the seller is responsible for ensuring the goods reach the destination address, but the buyer (recipient) is fully responsible for paying import duties, taxes (VAT/GST), and other customs administration fees.
- Process: The package will be held at customs until the recipient settles the tax bill.
- Advantages for the Seller: Initial shipping costs are lower and administration is simpler.
- Risks: If the buyer refuses to pay taxes, the package may be held, destroyed, or returned with additional fees.
What is DDP (Delivered Duty Paid)?
Under the DDP scheme, the seller assumes full responsibility. The seller pays all shipping costs, including duties, taxes, and document processing fees until the goods arrive at the buyer’s door.
- Process: Goods clear customs more smoothly because all fees have been prepaid by the sender.
- Advantages for the Buyer: A seamless shopping experience without any "surprise fees" upon delivery.
- Risks: The upfront shipping costs appear much higher for the seller.
That is the difference between DDU and DDP in international shipping. Currently, Biteship only offers shipping with the DDU format. If you encounter any issues or have further questions, please contact us via email at support@biteship.com. We are ready to assist you!