Business

Difference between DDP and DDU

Main Difference

DDP and DDU both are the internationally known terms. These are among the many international commercial terms which are approved by the ICC. DDP and DDU are the terms used in international trade and transactions. Both of these terms are incoterms but there are many differences between the two. DDP stands for “Delivery Duty Paid” while DDP stands for “Delivery Duty Unpaid”. You have to face these terms when you have to do shopping on the internet. If DDU is mentioned against the item you want to purchase, it means that delivery duty is unpaid so you have to pay all the importing charges and taxes from your pocket in addition to the actual price of the item. If DDP is mentioned against the item you want to purchase, it means that delivery duty is paid, thus all type of importing burden, delivery charges, duties and taxes have been paid.

DDP

ddpDDP is internationally known term approved and recognized by the ICC. It relates to the international trade and transactions. DDP stands for “Delivery Duty Paid”. When you have to do online shopping, you may find the term DDP against your desired item. It means that delivery duty for your country have been paid already including all duties, taxes and delivery charges, thus you only have to pay for the actual price of the item.

DDU

dduDDU is internationally known term approved and recognized by the ICC. It relates to the international trade and transactions. DDU stands for “Delivery Duty Unpaid”. When someone is going to purchase something online, he may get to face the acronym of DDU against the item to be being purchased. It is showing that delivery duty is unpaid and you need to pay for it including delivery charges, all duties, taxes and importing burden.

Key Differences

  • DDP stands for “Delivery Duty Paid” while DDU stands for “Delivery Duty Unpaid”.
  • In DDU transaction, all the duties and taxes are paid by the seller unless the product is reached in the buyer’s country. In DDP transaction, all the duties and taxes are to be paid by the buyer until it get reach to the buyer.
  • Items against DDP are preferable for buyer as compare to DDU.
  • Items against DDU are not preferable.
  • Both DDP and DDU are the acronym in three words with only difference in there is of “Paid” and “Unpaid”.