The difference between DDU air freight and DDP air freight
1. Definition: DDU air freight means that the seller transports the goods to the destination port designated by the buyer, but is not responsible for customs clearance, payment of duties and other taxes and other matters, and the buyer needs to bear the relevant expenses; while DDP air freight means that the seller is responsible for the delivery of the goods Ship to the destination port designated by the buyer, and need to be responsible for customs clearance, payment of duties and other taxes and other matters.
2. Responsibility: Under the term of DDU air freight, the responsibility of the seller is to deliver the goods to the destination port designated by the buyer. Once the goods arrive at the port of destination, the risk is transferred to the buyer, and the buyer needs to bear the responsibility of customs duties and other taxes, customs clearance and so on. Under the DDP air freight term, the seller is not only responsible for delivering the goods to the destination port, but also responsible for customs clearance, payment of duties and other taxes and other matters.
3. Price calculation: Under the DDU air freight term, the seller only needs to bear the cost of delivering the goods to the destination port, and the buyer needs to bear other costs. Under the DDP air freight term, the seller needs to bear the cost of sending the goods to the destination port, as well as customs clearance, payment of duties and other taxes and fees.
4. Cargo Control: Under the term of DDU air freight, once the goods arrive at the destination port, the buyer needs to carry out customs clearance procedures and pay related fees by himself. Therefore, the buyer has better control over the transportation and customs clearance process of the goods. However, under the DDP air freight term, the seller needs to be responsible for customs clearance procedures, so the seller has stronger control over the goods.
5. Trade customs: In different countries and regions, the usage habits of DDU air freight and DDP air freight may be different. In some regions, such as China, DDU air freight is the main trade price term. While in other regions, such as Europe, DDP air freight is the main trade price term.
In short, DDU and DDP are commonly used price terms in international trade. The seller and the buyer need to choose the appropriate price term according to the specific situation in order to reach a consensus in the transaction.