September 22, 2025
In today’s global trade, understanding shipping terms is crucial for smooth international transactions. One common term buyers frequently encounter is DDU – Delivered Duty Unpaid. But what does it really mean, and how does it impact your supply chain?
DDU refers to an international shipping agreement where the seller is responsible for delivering goods to the buyer’s destination country but not for paying import duties, taxes, or customs clearance fees. Under DDU, the seller covers transportation costs until the goods reach the agreed place, while the buyer takes care of all local charges once the shipment arrives.
This term is popular among small and mid-sized importers because it gives buyers control over local customs clearance and payment of duties. However, it also means buyers must be prepared to handle paperwork, local regulations, and additional costs before receiving the goods.
Experts recommend that businesses clearly agree on responsibilities before finalizing a deal under DDU to avoid unexpected expenses or delays. As global shipping becomes more complex, understanding Incoterms like DDU can help importers make smarter decisions and ensure smoother logistics operations.
