What is the difference between DDP, DDU, and DAP?
Time:
2019-06-03
DDU in English is "Delivered Duty Unpaid", which means "Delivered Duty Unpaid (Designated Destination)". This trade term refers to the actual process whereby the exporter and importer make delivery of the goods at a place in the importing country, where the exporter must bear all the costs and risks of delivering the goods to the named place, as well as the costs and risks of customs formalities.
What is DDU?
DDU in English is "Delivered Duty Unpaid", that is, "Delivered Duty Unpaid (Designated Destination)". This trade term refers to the actual process, the exporter and the importer in the importing country of a place for the delivery of goods, in which the exporter must bear all the costs and risks of the delivery of goods to the designated location, as well as the costs and risks of customs procedures. However, it is important to note that this does not include customs duties, taxes and other official fees that have to be paid at the time of importation of the goods. The importer has to deal with the additional costs and risks arising from the failure to clear the goods in time.
Generally speaking, DDU costs involved in the details or more miscellaneous, if the use of this trade term, the importer with the freight forwarder to confirm the price, be sure to let the other party to leave a written text, and stamped to avoid disputes in the later stages of the problem.
Second, what is DDP?
DDP in English as "Delivered Duty Paid", meaning "delivery after tax (designated destination)", this delivery means that the exporter in the import and export of the destination specified by the two sides for the completion of import customs clearance procedures, and then hand over the goods to the importer. goods to the importer.
In this trade term, the exporter needs to bear all the risks in the process of delivering the goods to the designated destination, and also needs to handle the customs clearance procedures at the port of destination, and pay taxes, fees and other costs. It can be said that under this kind of trade terms, the seller needs to bear the greatest responsibility. If the seller can not directly or indirectly obtain an import license, then it should be careful to use this terminology.
Third, what is the difference between DDU and DDP?
The biggest difference between DDU and DDP is that the goods are imported at the port of destination in the process of customs clearance of risk and cost of who actually bear the problem. If the exporter has the ability to complete the import customs clearance, then you can choose DDP, if the exporter does not have the ability to deal with the relevant matters, or is not willing to deal with the import procedures, bear the risks and costs, then you should use the DDU terminology.
The above is the introduction of some basic definitions and differences between DDU and DDP, in the actual work process, exporters must be based on their actual work needs, choose the right trade terms, so as to ensure the normal completion of their work.
How to calculate the cost of DUU and DDP.
Fob amount . Add: 1, all the local charge of the export port 2, ocean freight (whether positive or negative) is the cif amount If you want ddu: add the local charge of the destination port If you want ddp: add the tariff of the destination port
Difference between DAP and DDU.
DAP (Delivered at Place) It is a new term in the 2010 General Conditions, DDU is a term in the 2000 General Conditions, and there is no more DDU in 2010. The terms of DAP are agreed as follows: Delivered at Place This term applies to one or more of any modes of transportation, and refers to the handing over of goods to be unloaded on the means of transportation arriving at the named destination. This term applies to one or more of the modes of transportation and means that delivery is made by the seller at the named place of destination when the goods are placed at the buyer's disposal on the arriving conveyance ready to be unloaded, and the seller bears all the risks of their transportation to the named place. It is desirable that the parties clearly specify the place within the agreed destination, since the risk of transportation to that place is borne by the seller.
A Obligations of the seller.
A1 General Obligations The seller shall be required to provide the goods in conformity with the contract of sale, together with the corresponding commercial invoices and any other evidence of conformity that may be required by the contract. Any documents referred to in items A1 to A10 shall have the same force and effect if the parties have agreed or it is customary to use electronic records or programs.
A2 Licenses, Certificates of Approval, Secure Customs Clearance and Other Formalities When customs clearance is required, the seller must, at his own risk and expense, obtain any export licenses or other official approvals and carry out all customs formalities necessary for the exportation of the goods and their transportation through any country prior to delivery.
A3 CONTRACTS OF TRANSPORTATION AND INSURANCE b) CONTRACTS OF TRANSPORTATION The seller must at its own expense enter into a contract of carriage for the carriage of the goods to the named place of destination, or to an agreed place at the named place of destination (if any), and if such particular place has not been agreed upon or cannot be ascertained in accordance with practice, the seller shall be entitled to take delivery of the goods at the place at the agreed port of destination or place of destination which is most suitable for the purpose for which delivery has been agreed upon. c) Insurance Contract The seller is not obliged to enter into an insurance contract for the purchase of the property. However, the seller must, at the buyer's request and at the buyer's risk and expense (if any), provide the buyer with such information as the buyer may require in order to obtain insurance.
A4 Delivery The seller must place the goods at the disposal of the buyer on the agreed date or within the agreed period of time at the named place of destination (if any) on the arriving means of transportation ready for unloading.
A5 Transfer of risk The seller bears all risk of loss or damage to the goods until they have been delivered in accordance with A4, except for loss or damage to the goods in the condition set out in B5.
A6 Division of costs The seller shall pay a) all costs relating to the goods, other than those incurred in accordance with paragraph A3 a), until the goods have been delivered in accordance with paragraph A4, unless they are payable by the buyer as in the case of paragraph B6; b) any costs of unloading the goods at the place of destination which are to be borne by the seller in accordance with the contract of carriage; c) the costs of customs formalities, when such formalities are required, for export and all costs payable for export; and d) the costs of any other formalities, including the costs of customs clearance. (c) when customs clearance is required, the costs of customs clearance for export, and all duties, taxes and other charges payable on export, as well as the costs of transportation of the goods through any country prior to delivery in accordance with item A4.
A7 Notice to buyer The seller must give the buyer any notice required to enable the buyer to take such steps as are usually necessary to take delivery of the goods.
A8 Documents of delivery The seller must provide at his own expense such documents as will enable the buyer to take delivery of the goods as in the case of A4/B4.
A9 Inspection, packing, marking The seller must pay the cost of inspections (e.g. checking for quality, measuring, weighing and counting) required for delivery of the goods in accordance with A4, as well as the cost of mandatory pre-shipment inspections required by the exporting country, if any. The seller must pack the goods at his own expense, unless it is customary not to do so. Unless the buyer has notified the seller of special packing requirements before the conclusion of the contract of carriage, the seller may pack the goods in a manner suitable for the carriage of the goods, and the packaging shall be properly labeled.
A10 ASSISTANCE WITH INFORMATION AND RELATED COSTS Where applicable, the seller shall, at the buyer's request and at the buyer's expense and risk, furnish or give to the buyer, in a timely manner, any documents and information, including security-related information, necessary for the buyer's importation of the goods and/or their non-transportation to the final destination. The seller shall indemnify the buyer against all costs incurred by the buyer in providing or giving assistance in obtaining documents and information as in the case of B10.
B Obligations of the buyer
B1 General obligations The buyer must pay the purchase price according to the contract. Any documents referred to in items B1 to B10 shall have the same effect as electronic records or programs if the parties have agreed upon them in advance or if it is customary to do so. B2 Licenses, Certificates of Approval, Secure Customs Clearance and Other Formalities When customs clearance is required, the buyer obtains, at his own risk and expense, any import license or other official certificate of approval and carries out all customs clearance formalities for the importation of the goods.
B3 Transportation and Insurance Contracts a) Transportation Contracts The buyer is not obligated to the seller to enter into transportation contracts. The buyer is not obliged to the seller to enter into an insurance contract, but the buyer must provide the seller with the information necessary for the seller to obtain insurance as requested by the seller.
B4 Acceptance of the goods The buyer has to accept the goods when they are delivered as per A4.
B5 Transfer of Risk The buyer shall bear all risks of loss or damage to the goods from the time they are delivered as per A4. The buyer bears all risk of loss of or damage to the goods from the agreed delivery date or from the expiry of the period if a) he fails to perform his obligations in accordance with item B2; or b) he fails to give notice in accordance with item B7, provided that the goods have been clearly identified as being the goods of the contract.
B6 Division of costs The buyer must pay a) all costs relating to the goods from the time they are delivered as in the case of item A4; b) all costs incurred in taking over the goods by the means of transport arriving at the named place of destination.
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