Delivered Duty Paid (DDP)
Freight on Board (FOB)
Ex Works (EXW)
Cost of Goods Sold (COGS)
Delivered Duty Unpaid
Delivered Duty Unpaid or DDU is the contract assuming that a vendor or seller will assume transportation costs associated with an international or overseas sale. Furthermore, the buyer will assume all of the import/export fees or duty fees.
Delivered Duties Unpaid (DDU) Meaning
Delivered Duties Unpaid means that a seller will assume liabilities and costs associated with delivering goods to a country. However, the buyer assumes the duty fees or costs to bring the product into the country. Unless specified in the DDU contract the buyer will also assume all liability once the product has entered the desired country. This is something that is often negotiated between companies. DDU talks are often decided in association with the riskiness of that particular country.
For example, if a U.S. firm is selling to a company that is centered in a high risk or war plagued country, then there is little chance the U.S. firm would want to assume the responsibility of delivery within the country. Negotiations for delivered duties unpaid are not that different from the negotiations that take place domestically. DDU is essentially the same type of negotiation that occurs for Ex Works and Freight on Board.