DDP VS DDU which is better shipping from China to EU USA
If you import from China you may inevitablely met the trading terms like FOB, CIF, DDP, DDU etc. Among those terms DDU and DDP are the most commonly used when you looking for Chinese freight forwarder agent to help you shipping from China to EU USA via air, sea or train. What does DDP DDU means? Which is better way shipping from China to EU USA? We will help you reveal in this article.
Shipping from China to EU USA via DDP
DDP is Delivered Duty Paid, delivered after duty paid (…designated destination), it refers to the freight forwarder has completed the import customs clearance procedures at the designated destination, and will be delivered door to door after duty paid. The freight forwarder must bear all risks and costs of transporting the goods to the named destination, including any “taxes” payable at the destination when customs formalities are required (including the responsibility and risk of customs formalities, and the payment of handling charges, duties, taxes, warehousing and other charges).
Pros and Cons of DDP shipping from China to EU USA
1. Freight forwarder agent may have more responsibility under DDP, but they also have more control over the process. However, when something goes wrong during shipping, such as unexpected delays due to port strikes, covid19, political unrest or bad weather, taking on all the financial, legal and bureaucratic responsibilities can add significant costs to freight forwarder.
2. DDUs may look cheaper at checkout, but if customers don’t understand that there are additional fees involved, it can be expensive for both the buyer and freight forwarder. If the extra cost is unexpected, the customer may not ship from that freight forwarder agent again. More worse, they may decide not to pick up the shipment at all, and the shipment could end up being discarded at customs.
3. Some countries do not allow DDP, while others have complex systems. In these markets, freight forwarder may prefer to take a hands-off approach, leaving customs clearance to buyers with better local knowledge or their agents.
4. Considering the unforeseen circumstances, the buyer may pay the DDP fee and may not use the cheapest logistics partner, and the buyer needs to pay a lot of extra fees compared to DDU delivery.
Shipping from China to EU USA via DDU
DDU term is “Delivered Duty Unpaid, that is, “delivered duty unpaid (… named place of destination)”. It means that the freight forwarder agent(charged to seller) will deliver the prepared goods at the place designated by the importing country, and must bear all the costs and risks of transporting the goods to the designated place (excluding customs duties, taxes and other official fees payable at the time of import), and must also bear Costs and risks of customs formalities. The buyer shall bear the additional costs and risks arising from the failure to handle the import customs clearance of the goods in time.
The details of the expenses involved in the DDU clause are relatively complicated than DDP. When you confirming the price with the freight forwarder, you must be sure you or your custom clearance agent have the ability to handle the customs part.
Pros and Cons of DDU shipping from China to EU USA
For buyers, this method may be cheaper overall, with no padding on the checkout price. However, even when a buyer expects to pay duties and taxes, the amount can be unpredictable and exceed expectations. Unexpected brokerage, storage and late fees may apply.
What’s the difference between DDP and DDU shipping from China to EU USA
DDP: Delivery Duty Paid at Destination Port Delivery Duty Paid means that the seller completes the import customs clearance procedures at the designated destination, and hands over the goods that have not been unloaded on the delivery means of transport to the buyer to complete the delivery. The freight forwarder must bear all risks and costs of transporting the goods to the named destination, including any “taxes” payable at the destination when customs formalities are required (including the responsibility and risk of customs formalities, and the payment of handling charges, duties, taxes and other charges).
DDU: Delivery Duty Unpaid at Destination Port Duty Unpaid Delivery means that the seller hands over the goods to the buyer at the designated destination without going through import procedures or unloading the goods from the delivery means of transport, that is, the delivery is completed . The seller shall bear all risks and costs of transporting the goods to the named destination, excluding any “taxes” payable on import in the country of destination (including the responsibility and risk of customs formalities, and the payment of fees, duties, taxes and other charges). The buyer must bear this “tax” and the costs and risks caused by its failure to timely import customs clearance procedures.
DDP VS DDU which is better shipping from China to EU USA
Both DDP and DDU have their own advantages and disadvantages, and there is no difference between which is good or not, only whether it is suitable or not.
1) If the goods are relatively small like 100kg to 3000kg, the DDP mode will be more suitable, hassle free, convenient and fast;
2) If there are a lot of goods from 3000kg or even one container, DDU is more suitable and the price is more affordable. DDU is generally delivered by truck at the end, and the time limit is relatively stable;
3) Not all DDU methods are necessarily cost-effective. For example, the unit price of some products is relatively high, and the value of the whole container product is relatively high. Often, the tax on such products will be very high. But you may not be able to pick up the freight forwarder if you ask for this whole cabinet DDP method. If the tariff is high, you may lose money if you pick it up in the normal DDP mode. The freight forwarder will not pick up such loss-making goods.
If you are new to goods import from China and want to save time to ship from China to EU USA, then you can choose DDP, if you registered company and has Tax ID, EORI, VAT ID etc and you know how to clean customs and pay tax, then you can ship via DDU.
XForwarder offers all in one freight forwarder shipping service help you shipping from China to EU USA via both DDU and DDP, cost effective and hassle free, you are welcome to inquire DDP DDU air sea and train shipping from China to EU USA.
