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Incoterms: DDP VS. DDU VS. DAP
Incoterms are terminology specialized in logistics; many are acronyms and might be challenging to understand. However, you should be familiar with the words listed below. For example, DDU, DAP, and DDP. What are they, then, and how do they differ?
Delivery duty unpaid (DDU), as opposed to delivery duty paid (DDP), requires the final consumer or importer to pay the duties accrued after the product enters the destination country.
When a product arrives via DDU, customs will contact the consumer; in some cases, the customer may even need to pick up the parcel at the neighborhood post office. Unfortunately, a client frequently places a DDU order without realizing it. They then contact the retailer's customer service department, cancel the order, or decide not to accept it and send it back.
Since DDP is a cross-border option that accounts for all expenses upfront, the merchant is still free to decide whether to pass those fees along to the customer by raising the goods' price or just absorbing those costs.
The seller assumes all associated expenses and risks when an item is "delivered at a place," or DAP.
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