Business

Difference Between DDP and DDU

Main difference

DDP and DDU are both internationally known terms. These are among the many international commercial terms approved by the ICC. DDP and DDU are the terms used in international trade and transactions. Both terms are incoterms, but there are many differences between the two. DDP stands for “Delivery Duty Paid”, while DDP stands for “Delivery Duty Unpaid”. You have to face these terms when you have to make purchases on the Internet. If DDU was mentioned against the item you want to buy, it means shipping duty is not paid, so you need to pay all import charges and taxes by your pocket in addition to the actual price of the item. If DDP is mentioned against the item you want to buy, it means delivery duties are paid,

What is PDD?

DDP is an internationally known term approved and recognized by the ICC. It is related to international trade and transactions. DDP stands for “Delivery Duty Paid”. When shopping online, you can find the term DDP next to the item you want. It means that the shipping duties for your country have already been paid, including all duties, taxes and shipping charges, so you only need to pay the actual price of the item.

What is DDU?

DDU is an internationally known term approved and recognized by the ICC. It is related to international trade and transactions. DDU stands for “Delivery Duty Unpaid”. When someone goes to buy something online, they may be pitted against the DDU acronym against the item being purchased. It shows that delivery duties are unpaid and you need to pay for them, including shipping charges, all duties, taxes and import charge.

Key differences
  1. DDP stands for “Delivery Duty Paid”, while DDU stands for “Delivery Duty Unpaid”.
  2. In the DDU transaction, the seller pays all duties and taxes unless the product arrives in the buyer’s country. In DDP transaction, all duties and taxes must be paid by the buyer until they reach the buyer.
  3. Items against DDP are preferable for the buyer compared to DDU.
  4. Items against DDU are not preferred.
  5. Both DDP and DDU are three word acronyms with the only difference being “Paid” and “Unpaid”.

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