Delivery Duty Paid (DDP) vs Delivery Duty Unpaid (DDU)
Since Brexit, shipping goods outside of the UK has become increasingly difficult. There are many internal checks and fees included in transporting the goods to your customers. Two main fees that must be considered before shipping your goods are DDP (Delivered Duty Paid) and DDU (Delivery Duty Unpaid). Every country has its own sets of rules, regulations and taxes for importing. Not meeting these may result in your goods being returned and extra fees.
The duties and other charges can be paid either by the sender or receiver of shipment, this should be determined before the goods are shipped, if not, then goods can be held at customs for long periods at a time which will incur even more charges.
The shortened down terms for the duties paid and unpaid are called “Incoterms” or International Commercial Terms and are a set of pre-defined trade codes compiled by the International Chamber of Commerce (ICC).
What do both DDP and DDU mean in shipping terms?
DDU incoterms payment means the receiver/customer will get contacted by customs when they receive a shipment and will have to pay charges to get their shipment released and get it delivered.
DDP incoterms payment means the sender is responsible for ensuring the shipment and the customs clearance fees are paid so the customer receives the shipment without being contacted.
Which is better, DDP or DDU?
DDU is the cheaper option, but the end consumers are sometimes unaware that duties must be paid until they get a call from customs, this can get expensive as brokerage, storage and late payment may apply.
DDP is a little more expensive as couriers will process the payment to customs on the customer’s behalf for an additional fee.
We believe that DDP is a better option as customers are not hit with fees they didn’t expect, and customers receive their shipments quicker and smoother.
To learn more about what we can offer your business from Goods into Goods Out and all activities in between, contact sales@braysolutions.com.
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To discuss working with Bray Solutions and how we can support you. Contact us via 01780 784875 or email: info@braysolutions.co.uk.
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