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Simple English definitions for legal terms
delivered duty unpaid
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A quick definition of delivered duty unpaid:
Delivered Duty Unpaid (DDU) is a term used in business contracts that describes the responsibilities of the buyer and seller when it comes to delivering goods. The seller is responsible for clearing the goods for export, paying for transportation costs, and making the goods available to the buyer at the destination. However, the buyer is responsible for paying any import duties. Once the seller's carrier arrives at the agreed destination, the delivery is complete, and the risk of loss passes to the buyer. This term is usually used for land delivery, but it doesn't limit the mode of transportation. If the delivery point is a port, other terms like Delivered Ex Ship or Delivered Ex Quay are preferred.
A more thorough explanation:
Definition: Delivered duty unpaid (DDU) is a term used in mercantile contracts that outlines the responsibilities of the buyer and seller regarding the delivery, payment, and risk of loss of goods. Under this term, the seller must clear the goods for export, pay for the cost of carriage (excluding unloading charges and import duties), and make the goods available to the buyer onboard the carrier at the destination. The seller's delivery is considered complete when the seller's carrier arrives at the agreed destination, and the buyer is responsible for all import duties.
Example: A company in the United States orders 1000 units of a product from a manufacturer in China. The manufacturer agrees to deliver the goods to the buyer's warehouse in the US using DDU terms. The manufacturer clears the goods for export, pays for the cost of carriage, and makes the goods available to the buyer onboard the carrier at the destination. However, the buyer is responsible for paying all import duties and taxes once the goods arrive in the US.
Explanation: In this example, the manufacturer and buyer have agreed to DDU terms, which means that the manufacturer is responsible for delivering the goods to the buyer's warehouse in the US. However, the buyer is responsible for paying all import duties and taxes once the goods arrive in the US. This means that the buyer will need to factor in these additional costs when budgeting for the purchase.