DDU Featured Image

DDU incoterms: Meaning, terms and conditions

International commercial terms, or incoterms represent a series of laws and regulations related to import and export activities.

DDU (Delivered Duty Unpaid) are old incoterms as they were replaced by the DAP incoterm in 2010. Despite being outdated, DDU remains a notable element in the world of international trade. Many businesses continue to use DDU incoterms to this day, and they do it for several reasons.

What exactly are DDU incoterms, what do they entail, and when do you use them? Let’s find out!

What does DDU mean?

Incoterms are published by the International Chamber of Commerce (ICC), which revises and updates them every ten years. In 2010, four incoterms were removed from the list: DAF (Delivered At Frontier), DES (Delivered Ex Ship), DEQ (Delivered Ex Quay), and DDU (Delivered Duty Unpaid). All of them were replaced by DAP (Delivered At Place) incoterm.

Although DDU incoterms are not official anymore since the ICC revised the incoterms in 2010, some businesses are still using them.

DDU stands for Delivered Duty Unpaid, and this incoterm specifies that the seller is responsible for managing the goods from the origin point to the delivery at a designated place in the destination country. He also pays for all transportation charges and assumes all the risks during transport. On the other hand, the buyer has to unload the goods and pay for import charges.

Like DAP incoterm, DDU is used for its simplicity and convenience, especially for the buyer who has few responsibilities. The seller is the one handling most of the shipping process, which offers cost transparency to the buyer who can budget effectively.

SIAM Shipping Alert : SIAM Shipping offers expertise in production outsourcing from Thailand and beyond. Our experienced team handles it all - from sourcing to shipping - so you can focus on growing your business. Don't hesitate to contact us via Whatsapp, or request a free shipping quote.

What are the buyers and the sellers responsibilities with DDU?

Let’s take a closer look at the responsibilities of both parties.

Seller’s obligations under DDU:

  • Complete the packaging and labeling of items;
  • Load goods onto a local carrier (truck, van, etc.) and pay the fees associated with this process;
  • Transport and deliver goods to the shipping terminal;
  • Handle the export clearance, which includes export duties, taxes, and customs clearance;
  • Remove goods from the local carrier and load them onto the cargo transport, then pay the Origin Terminal Handling Charges (OTHC);
  • Pay freight charges related to the import activity;
  • Transfer the items to local transportation once they arrive at the destination port/airport and pay the Destination Terminal Handling Charges (DTHC);
  • Deliver the goods to the final destination.

Buyer’s obligations under DDU:

  • Unload the goods at the final destination;
  • Handle the import clearance, which includes import duties, taxes, and customs clearance.

The risk of loss and damages to goods is transferred to the buyer as soon as the goods are delivered to the country of destination, alongside the ship.

SIAM Shipping info: SIAM Shipping helps with document preparation and offers a customs clearance service. To ensure the project's feasibility, we carefully review the entire bundle of documents for every shipment we handle. Contact us via WhatsApp, and receive a free quote in less than 24 hours.

When to use DDU Agreement?

Some businesses still use DDU incoterm because they are simply used to it. It could be because it was used in a long trade relationship, and since the conditions haven’t changed, neither did the incoterm. The situations in which you can use this agreement are similar to DAP incoterm ones. As a seller, you can use DDU incoterm when you want to have total control over most of the process.

To use DDU Agreement, traders should specify DDU incoterms 2000 to avoid misunderstandings between both parties.

SIAM Shipping info: Do you like our article today? For your business interest, you may like the following useful articles :

SIAM Shipping Advise : We help you with the entire sourcing process so don't hesitate to contact us if you have any questions!

  • Having trouble finding the appropriate product? Enjoy our sourcing services, we directly find the right suppliers for you!
  • You don't trust your supplier? Ask our experts to do quality control to guarantee the condition of your goods!
  • Do you need help with the logistics? Our international freight department supports you with door to door services!

 

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CIP Featured Image

CIP incoterms: Meaning, terms and conditions

International commercial terms, or incoterms represent a series of laws and regulations related to import and export activities.

CIP (Carriage and Insurance Paid To) incoterms are often employed for the flexibility they provide to both the seller and buyer. Their simplicity, adaptability, and clear division of risks also make them a good option for international shipping.

What exactly are CIP incoterms, what do they entail, and when do you use them? Let’s find out!

What does CIP mean?

CIP, which stands for Cost and Insurance Paid To, is an incoterm suitable for any mode of transportation. This is one of the reasons it is interesting to use it in a multimodal shipping process.

Under CIP Agreement, the seller carries out the same responsibilities as the ones under CIF Agreement. In other words, he is responsible for managing the goods until they arrive at the designated place in the destination country. He also has to pay for freight charges, as well as provide freight insurance for the items. However, the transfer of risks occurs when the goods are delivered to the first carrier, in the origin country.

The cargo insurance level required from the seller has to cover all risks. The seller can refer to Institute Cargo Clause (A), published and managed by the Lloyd's Market Association (LMA).

All in all, CIP incoterm is used for its flexibility, and advantages for both parties.

CIP incoterm rules
Cost and Insurance Paid For

SIAM Shipping Alert : SIAM Shipping offers expertise in production outsourcing from Thailand and beyond. Our experienced team handles it all - from sourcing to shipping - so you can focus on growing your business. Don't hesitate to contact us via Whatsapp, or request a free shipping quote.

What are the buyer's and the seller's responsibilities with CIP?

Let’s take a closer look at the responsibilities of both parties.

Seller’s obligations under CIP:

  • Complete the packaging and labeling of items;
  • Load goods onto a local carrier (truck, van, etc.) and pay the fees associated with this process;
  • Transport and deliver the goods to the shipping terminal;
  • Handle the export clearance, which includes export duties, taxes, and customs clearance;
  • Remove goods from the local carrier and load them onto the cargo transport, then pay the Origin Terminal Handling Charges (OTHC);
  • Pay freight charges and freight insurance.

Buyer’s obligations under CIP:

  • Transfer the items to local transportation once they arrive at the destination port/airport and pay the Destination Terminal Handling Charges (DTHC);
  • Deliver the goods to the final destination;
  • Unload the goods at the final destination;
  • Handle the import clearance, which includes import duties, taxes, and customs clearance.

During the process, the seller’s responsibilities for any risks of loss and damages to goods stop when the goods are delivered at the origin point to the first carrier.

SIAM Shipping info: SIAM Shipping helps with document preparation and offers a customs clearance service. To ensure the project's feasibility, we carefully review the entire bundle of documents for every shipment we handle. Contact us via WhatsApp, and receive a free quote in less than 24 hours.

When to use CIP Agreement?

CIP Agreement can be a good option for both seller and buyer because it offers a clear division of responsibilities and risks. It should be used in the following situations:

  • When the importer wants a secured shipping process, as solid insurance coverage is included in the CIP Agreement;
  • For complex logistics process that includes more than one mode of transport employed;
  • For high-value or perishable goods, which are items that require good insurance;
  • When the exporter wants to have control over most of the shipping process until the goods reach the destination terminal.

SIAM Shipping info: Do you like our article today? For your business interest, you may like the following useful articles :

SIAM Shipping Advise : We help you with the entire sourcing process so don't hesitate to contact us if you have any questions!

  • Having trouble finding the appropriate product? Enjoy our sourcing services, we directly find the right suppliers for you!
  • You don't trust your supplier? Ask our experts to do quality control to guarantee the condition of your goods!
  • Do you need help with the logistics? Our international freight department supports you with door to door services!

 

SIAM Shipping | Procurement - Quality control - Logistics

 

Alibaba, Dhgate, made-in-china... Many know of websites to get supplies in Asia, but how many have come across a scam ?! It is very risky to pay an Asian supplier halfway around the world based only on promises! DocShipper offers you complete procurement services integrating logistics needs: purchasing, quality control, customization, licensing, transport...

 

Communication is important, which is why we strive to discuss in the most suitable way for you!

DDP Featured Image

DDP incoterms: Meaning, terms and conditions

DDP (Delivery Duty Paid) incoterms are certainly the easiest transaction terms for the importer. Their simplicity, clear framework, and adaptation make them a good option for both the seller and the buyer under certain circumstances.

What exactly are DDP incoterms, what do they entail, and when do you use them? Let’s find out!

What does DDP mean?

Incoterms are published by the International Chamber of Commerce (ICC), which revises and updates them every ten years.

DDP, which stands for Delivered Duty Paid, is an incoterm suitable for any mode of transportation and is known for being the easiest shipping process for the buyer.

Under DDP incoterm, the seller bears all costs and responsibilities, from managing the goods at the origin point to delivering them at the designated place in the destination country. He also pays for the fees related to importation. DDP is actually the only incoterm where the seller is required to pay for both export and import charges.

Not everyone should choose to work with DDP incoterms, as most of the shipping process is managed by the seller. Having some experience and already being familiar with shipping activities is essential for sellers who use DDP.

DDP incoterm rule
Delivered Duty Paid

SIAM Shipping Alert : SIAM Shipping offers expertise in production outsourcing from Thailand and beyond. Our experienced team handles it all - from sourcing to shipping - so you can focus on growing your business. Don't hesitate to contact us via Whatsapp, or request a free shipping quote.

What are the buyers and the sellers responsibilities with DAP?

As we said, under DDP Agreement, the seller has far more responsibilities than the buyer. Let’s take a closer look at both parties’ obligations.

Seller’s obligations under DDP:

  • Manage the packaging and labeling of items;
  • Load goods onto a local carrier (truck, van, etc.) and pay for the charges related to this operation;
  • Transport and deliver goods to the shipping terminal;
  • Remove goods from the local carrier and load them onto the main carrier, then pay the Origin Terminal Handling Charges (OTHC);
  • Handle the export clearance, which includes export duties, taxes, and customs clearance;
  • Pay freight charges for the transportation;
  • Transfer items to local transportation upon arrival at the terminal (port, airport, etc.) and pay the Destination Terminal Handling charges (DTHC);
  • Deliver the goods to the final destination;
  • Handle the import clearance, which includes import duties, taxes, and customs clearance.

Buyer’s obligations under DDP:

  • Unload the goods at their final destination.

With DDP Agreement, the seller is responsible for the entire shipping process, and he is responsible for any risk of loss and damages to goods. Note that with DDP incoterm, the seller is not required to pay for insurance coverage, but it is highly recommended.

SIAM Shipping info: SIAM Shipping helps with document preparation and offers a customs clearance service. To ensure the project's feasibility, we carefully review the entire bundle of documents for every shipment we handle. Contact us via WhatsApp, and receive a free quote in less than 24 hours.

When to use DDP Agreement?

As a buyer, it is interesting to use DDP Agreement when you want to simplify your shipping process. The seller, on the other hand, needs to be experienced. He also needs to make sure that he has enough knowledge in the customs regulations of the destination country.

DDP Agreement should be used:

  • When the exporter is experienced and familiar with the bureaucratic procedures in the destination country;
  • As an added value for the customer, which makes the seller more competitive;
  • When the exporter has a significant network and has access to competitive freight rates;
  • When the trade-relationship is a long-term one, and can be trusted;
  • For high-value items;
  • For new importers who want to minimize risks and focus on their core business.

SIAM Shipping info: Do you like our article today? For your business interest, you may like the following useful articles :

SIAM Shipping Advise : We help you with the entire sourcing process so don't hesitate to contact us if you have any questions!

  • Having trouble finding the appropriate product? Enjoy our sourcing services, we directly find the right suppliers for you!
  • You don't trust your supplier? Ask our experts to do quality control to guarantee the condition of your goods!
  • Do you need help with the logistics? Our international freight department supports you with door to door services!

 

SIAM Shipping | Procurement - Quality control - Logistics

 

Alibaba, Dhgate, made-in-china... Many know of websites to get supplies in Asia, but how many have come across a scam ?! It is very risky to pay an Asian supplier halfway around the world based only on promises! DocShipper offers you complete procurement services integrating logistics needs: purchasing, quality control, customization, licensing, transport...

 

Communication is important, which is why we strive to discuss in the most suitable way for you!

DAP Featured image

DAP incoterms: Meaning, terms and conditions

DAP (Delivered At Place) incoterms are employed by sellers who want to strengthen their competitiveness by offering seamless logistics management up to the destination for their customers. They also present a good option for buyers who prefer a burden-free logistics process, allowing them to focus on growing their business.

What exactly are DAP incoterms, what do they entail, and when do you use them? Let’s find out!

What does DAP mean?

Incoterms are published by the International Chamber of Commerce (ICC), which revises and updates them every ten years.

DAP, which stands for Delivered At Place, is an incoterm used for all modes of transportation.

Under a DAP Agreement, the seller is responsible for delivering the goods to the final destination. He also bears all risks and costs involved in this matter. As for the buyer, he is only responsible for unloading the goods at the designated final place and for the import clearance.

The reason why they are used is because of their simplicity and convenience.

DAP Incoterm rules Delivered At Place

SIAM Shipping info: SIAM Shipping helps with document preparation and offers a customs clearance service. To ensure the project's feasibility, we carefully review the entire bundle of documents for every shipment we handle. Contact us via WhatsApp, and receive a free quote in less than 24 hours.

What are the buyer's and the seller's responsibilities with DAP?

When using DAP Agreement, the seller has more obligations than the buyer. Let's examine the responsibilities of both parties.

Seller's obligations under DAP:

  • Manage the goods from the origin point to the expedition shipping terminal (port, airport, etc.): this includes their packaging, labeling, loading onto a local carrier, transportation and delivery to the expedition location;
  • Handle the export clearance, which includes export duties, taxes, and customs clearance;
  • Unload the goods at the shipping terminal and load them onto the container or main carrier used for delivery to the destination terminal, then pay the Origin Terminal Handling Charges (OTHC) and the shipping freight;
  • Unload the goods once they reach the destination terminal and transfer them to a local carrier used for delivery to the final warehouse/location, then pay the Destination Terminal Handling Charges (DTHC);
  • Transport and deliver the goods to the final place.

The seller is responsible for any risk of loss or damages to goods that might occur during these steps, more specifically until before unloading of the goods at the final place.

Buyer's obligations under DAP:

  • Unload the goods at the final destination;
  • Handle the import clearance, which includes import duties, taxes, and customs clearance.

Note that each DAP Agreement can differ if the contractual clauses are customized. For example, the seller can be responsible for the unloading of the goods at the final location/warehouse if it is specified in the contract.

When to use DAP Agreement?

Using DAP Agreement can be a good option for both seller and buyer because each agreement can be different according to the contractual clauses possible. These are negotiated between both parties and can be related to the place and timing of delivery, the packaging and labeling, additional services, insurance, and more.

Note that the seller is not required to include freight insurance in the contract, but it is a possibility.

It would be interesting to use DAP incoterm in the following situations:

  • When you are a new importer or not familiar with the country you are working with;
  • When the seller has a good network and is experienced: with access to competitive freight rates and the cost of DAP Agreement, which is more expensive, the seller can ensure an increase in his cash flow;
  • When the buyer wants to optimize his cash flow, which can be done through a contractual clause specifying that the buyer can pay upon delivery of goods at the final place, and not before.
  • When the final destination is a warehouse, making it easier for the buyer.

SIAM Shipping Advice : Using DAP incoterm can be expensive. To get the best deal possible, we advise you to compare the price with CIF (Cost Insurance & Freight) or FOB (Free On Borard) rates.

Do you still have concerns about how incoterms work and which one to use for your import & export activities? Do not hesitate to contact us via Whatsapp or request a free shipping quote.

SIAM Shipping info: Do you like our article today? For your business interest, you may like the following useful articles :

SIAM Shipping Advise : We help you with the entire sourcing process so don't hesitate to contact us if you have any questions!

  • Having trouble finding the appropriate product? Enjoy our sourcing services, we directly find the right suppliers for you!
  • You don't trust your supplier? Ask our experts to do quality control to guarantee the condition of your goods!
  • Do you need help with the logistics? Our international freight department supports you with door to door services!

 

SIAM Shipping | Procurement - Quality control - Logistics

 

Alibaba, Dhgate, made-in-china... Many know of websites to get supplies in Asia, but how many have come across a scam ?! It is very risky to pay an Asian supplier halfway around the world based only on promises! DocShipper offers you complete procurement services integrating logistics needs: purchasing, quality control, customization, licensing, transport...

 

Communication is important, which is why we strive to discuss in the most suitable way for you!

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