What is DDU procedure?

[DavidInt]

Up

0

::

Hi All,
Just wondering if any experienced importer can help me out with this one. I have received a quote from a supplier for about $5000 AUD worth of merchandise under DDU condition. Now, I’m aware that means Delivery (Door to door) Duties Unpaid and that I have to pay for clearance and duties. However, I’m not sure of the process. Do I
a) Arrange customs broker myself and pay for clearance and duties then contact their freight forwarder to forward the goods to my company OR
b) The supplier arrange their own freight forwarder to do the clearance and pay duties and charge me the amount after they have paid for it?

Thanks in advance,
David.

[cargohound]

Up

0

::

Hi David

DDU is an old Incoterm and has been replaced by DAP (Delivered at Place). Check out this quick reference guide on Incoterms 2010 This means the seller of the goods is required to deliver the goods to your nominated place, he or she is responsible for Export Clearance from the country of origin, but is NOT obliged to provide Import Clearance in the country of destination, unless this has been agreed between both parties.

Under DAP you will need to arrange for and pay a Customs Broker to clear your goods through customs, and you will need to arrange to pay for Customs Duties and Taxes.

The seller is still responsible to pay for the terminal Handling and the Delivery charges to your named place

Hope this helps

Cheers

Ian

[Anonymous]

Up

0

::

Hi David,

I’m not the right person to answer your questions, so am glad that Ian has covered that for you, but I’d like to send you a warm welcome to Flying Solo.

Thanks for joining us, and I hope you enjoy being part of the gang here.

All the best,
Jayne

[DavidInt]

Up

0

::

Thanks Ian for your expert advice. Thank you also Jayne for making me feel warm and fuzzy.

[Petemac]

Up

0

::

DavidInt, post: 223351, member: 72749 wrote:

Thanks Ian for your expert advice. Thank you also Jayne for making me feel warm and fuzzy.

Hi David, Ian is correct and I would recommend going to the link he suggested, as your business expands, especially if you start using sea freight, the terminology is essential when negotiating a price with a supplier.

Just make sure the named place is where you want it delivered to ie your own address. I have heard of people getting caught where it was only as far as the airport and they then had to arrange, at their cost, to get it delivered to them. Always best to be 100% sure.

All the best with the business

Cheers

[Author]

Posts