DDU stands for Delivered Duty Unpaid. It is a legacy trade term that still shows up in shipping quotes and older contracts. The concept is simple: the seller delivers to the destination country, and the buyer handles import clearance and pays duties and taxes.
DDU is not part of Incoterms 2010 or Incoterms 2020. It was an Incoterms 2000 rule and was replaced when the ICC updated the rules. In practical terms, most DDU deals are trying to achieve what DAP covers today.
Under DDU, the seller takes responsibility for getting the goods to a named place in the buyer’s country. The buyer then takes over for import customs clearance, import duties and taxes, and any downstream local handling that is not explicitly included in the seller’s scope.
| Topic | Seller Under DDU | Buyer Under DDU |
|---|---|---|
| Export clearance | Usually handled by seller (export filing and export formalities) | Provides any buyer-side data required for export filing |
| Main carriage to destination | Arranges transport to the named place in the destination country | Coordinates receiving window and local site requirements |
| Import clearance | No obligation to clear for import | Clears customs, provides import licenses, appoints broker |
| Duties, VAT, and import taxes | Not paid by seller | Pays duties, VAT, and any import taxes |
| Unloading | Depends on contract and named place | Often buyer’s responsibility unless explicitly included |
| Demurrage and delays at import | Risk until delivery point, then depends on cause and contract | Often falls on buyer if caused by import holds and clearance delays |
Risk transfer depends on the agreed delivery point. If the seller is delivering to a named place in the destination country, risk typically stays with the seller until the goods are delivered to that point, ready for unloading. The contract should state the exact named place and whether delivery includes terminal handling or door delivery.
Contract drafting tip: Write the place like an address, not a city. “DDU Paris” is vague. “DAP, 12 Rue X, Paris, France, Incoterms 2020” is audit-friendly.
Some parties treat it as an official 2020 term. Others treat it as a casual label meaning “buyer pays duty.” That mismatch produces arguments over delivery point, unloading, and local charges.
Import duty is only one line item. Brokerage, bond, VAT, exams, storage, and port fees can become the actual cost. If the buyer is not prepared, cargo sits and charges stack.
In parcel shipments, carriers often advance duties and then invoice the buyer with extra handling fees. Many buyers call that “unexpected,” but it is normal in duty-unpaid setups.
If you do not state who unloads, you can end up with a truck at the buyer’s site and nobody authorized to break seals, unload, or sign. Then detention starts.
| Term | Seller Delivers To | Who Clears Import and Pays Duty | Best Use |
|---|---|---|---|
| DDU | Named place in destination country (legacy concept) | Buyer | Only when locked into legacy wording and both sides know what it means |
| DAP | Named place in destination country, ready for unloading | Buyer | Modern replacement for DDU, clean for most cross-border shipments |
| DDP | Named place in destination country | Seller | Seller controls end-to-end, but must handle import compliance and tax exposure |
If a counterparty insists on “DDU,” you can still protect the deal by translating it into a modern term and then locking the commercial intent in writing.
Example clause: “Delivery shall be DAP, [full address], [country], Incoterms 2020. Buyer is responsible for import clearance, duties, VAT, and customs broker fees. Unloading at destination is for Buyer’s account.”
No. DDU literally means duty unpaid. Import duty and taxes are for the buyer’s account unless the parties agree otherwise.
Parties can contract on any commercial terms they want, but DDU is not a current ICC Incoterms rule. For clean execution, use DAP and specify the named place.
Import clearance is handled by the buyer. Export clearance is generally handled by the seller, but contracts should state this explicitly.
It depends on the cause and the contract. If the hold is tied to import clearance, missing import permits, or buyer broker issues, the buyer typically pays. If the hold is tied to incorrect export documents or seller-side errors, the seller may bear the cost. Put it in writing.
DAP is the usual replacement in modern contracts when the buyer pays import duties and clears customs.
Disclaimer: This guide is for general information only and does not constitute legal, tax, or customs advice. Incoterms allocate delivery obligations, costs, and risk, but they do not replace a properly drafted sale contract. Obtain jurisdiction-specific advice for customs and VAT.
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