Delivered Duty Unpaid - DDU

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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.

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