DDU/DAP are inconterms commonly used in your exports.
Inconterms are a set of 11 standard commercial terms that make certain obligations in international trade contracts more uniform, clear and transparent.
Find out more about inconterms with Alfaloc.
The air service usually used for your international shipments to the USA is generally based on DDU inconterms, currently DAP.
The incoterm DDU (Delivered Duty Unpaid) means that the seller delivers the goods to the country of destination, while the buyer covers the import costs, including taxes and duties.
Although the most recent version of Incoterms (2020) replaced DDU with DAP (Delivered at Place), the term DDU is still used in some contracts.
The main difference is that the DAP has clearer rules, but maintains the same essence: the buyer is responsible for customs procedures.
This was the case until the new American government introduced taxes. Previously, when the costs were not settled at the destination, the goods were returned to the shipper or when the customer had credit on their account locally, the goods were still delivered to the recipient.
This is not currently the case. Currently, with the new measures in the United States (in which all shipments sent to the United States may have higher clearance fees), operators have implemented a measure (since May 2) in which all shipments made and subject to payment of customs duties and other fees issued by US customs, if the recipient does not settle them within 45 days of delivery, these amounts will be reverted to the shipper.
Issues such as communicating to the Tax Authority have a lot of legislation associated with them, and it’s quite a complex subject. We always recommend that you speak to Customer Service on 917 777 100, so that you can have all your doubts clarified, in order to prepare all the mandatory documents, avoiding fines or the delay/cancellation of the submission
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