DELIVERED DUTY UNPAID (DDU) Named Place of Destination

The seller clears the goods for export and is responsible for making the goods available (usually in the buyer’s country) at the named point and place and on the date or period specified in the sales contract but not unloaded from any arriving means of transport.

DDU can be used on all means of transport. The buyer bears the cost and risk of carrying out import customs formalities, including the payment of formalities, customs duties, taxes and other charges (unless otherwise specified in the contract). The seller’s business risk is high compared to the C terms above, be- cause the seller bears the risk of loss during transit and may not invoice the buyer until delivery at the final destination has taken place.

However, the risk may pass even before the goods have reached the agreed delivery point, for example, when the goods are detained at a customs station because of the buyer’s failure to fulfil the obligation to clear the goods for import (thus the buyer may bear the cost of any loss and demurrage charges during this time). Overall, the buyer’s risks are minimized, but at a cost which is factored into the offered DDU price. Because of the risks involved the supplier may, depending on the destination and other commercial considerations, be reluctant to offer DDU delivery.