Delivered Duty Unpaid (DDU)
Delivery Duty Unpaid (DDU) refers to goods that are shipped internationally without any prior payment of import duties and tax. This means that any charges in the form of taxes and duties will be paid by the receiver once the goods arrive at the destination customs.
Receivers will be informed by the courier or customs agent to pay for the import taxes and duties when the shipment arrives at destination customs. Additional charges, such as storage charges, handling charges, etc., may be imposed by customs as well. Once payment is made, only the shipment will be released by customs and delivered to the receiver.
Delivered Duty Paid (DDP)
Delivery Duty Paid (DDP) refers to goods that are shipped internationally with prior payment made by the sender. The sender will take care of all the responsibilities regarding import clearance, import duties and tax payments of the goods until they arrive at the parcel destination.
The sender is to prepare and bear for shipping costs by reliable couriers, documentation, paying for point of origin customs clearance fees, import costs, destination customs clearance fees, taxes on the goods (Value Added Tax - VAT) and others that may be included. The sender is also advised to check the destination country for its de minimis value to prepare for tax purposes.
DDU vs DDP
Now that you understand what DDU and DDP mean, which international shipment method is the best for you?
In our opinion, DDP is a more advantageous method as it speeds and smooths out the shipment process than the DDU method. This will have a good impact on your receiver’s experience, as they will receive the shipments earlier and without a hitch.
Whereas, the DDU method will cause late receival and could impact the whole good experience for the receivers. Receivers are expected to make a payment just to retrieve their parcels, especially if they’re not informed early on.
You may learn on how to book DDP shipments on EasyParcel to be better prepared before booking.