Delivered Duty Unpaid - DDU

AAA

DEFINITION of 'Delivered Duty Unpaid - DDU'

A transaction in international trade where the seller is responsible for making a safe delivery of goods to a named destination, paying all transportation expenses but not the duty. The seller bears the risks and costs associated with supplying the good to the delivery location, where the buyer becomes responsible for paying the duty and other customers clearing expenses.

INVESTOPEDIA EXPLAINS 'Delivered Duty Unpaid - DDU'

Incoterms, like DDU, are contract specifications outlining who bears the costs and risks of international transactions. Some incoterms specify where in the transaction process the delivery risks shift from seller to buyer, while others determine who incurs expenses.

It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.

RELATED TERMS
  1. Incoterms

    Trade terms published by the International Chamber of Commerce ...
  2. Delivered Ex Ship - DES

    A trade term requiring the seller to deliver goods to a buyer ...
  3. Delivered Ex Quay - DEQ

    In international trade, a contract specification where the seller ...
  4. Delivered At Frontier - DAF

    In international trade, a contract specification requiring the ...
  5. Welfare Capitalism

    Definition of welfare capitalism.
  6. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate ...
Related Articles
  1. What Is International Trade?
    Personal Finance

    What Is International Trade?

  2. Globalization: Progress Or Profiteering?
    Economics

    Globalization: Progress Or Profiteering?

  3. Getting Into International Investing ...
    Mutual Funds & ETFs

    Getting Into International Investing ...

  4. What Is An Emerging Market Economy?
    Economics

    What Is An Emerging Market Economy?

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center