Shipping to the UK: DDP, DDU – what are the abbreviations?

Table of contents:

1. Britain’s exit from the European Union – changes, changes
2. DDP, DDU – what do these abbreviations mean?
3. Obligations of the seller and the buyer
4. For international trade – bet on Global24!

UK exit from the European Union – changes, changes

With the UK’s exit from the European Union, there has been a lot of confusion. While BREXIT has entailed a number of changes on a number of issues, it is safe to say that one of the most important to come into effect after 1 January 2021 are the changes affecting freight transport. It is worth mentioning that this direction was the fourth largest market served by Polish companies, so they were also affected by the changes.

Nowadays, you have to meet even more strict requirements to be able to legally deliver cargo to the islands. From the beginning of 2021, the UK has become a third country for Poland. This has to do with BREXIT and the changes that have taken place in the rules for cars entering the islands. What does this mean in practice? First and foremost, controls have returned to the borders, making the waiting time for entry significantly longer. Transport after England’s exit from the European Union therefore requires a lot of patience and the preparation of appropriate documentation. Why is this so important? This is the only way to save a lot of unnecessary nerves and, most importantly, to be sure to complete your load in the UK.

Expand your knowledge: International shipping from UK: What is “commodity code” ?

Before we get started, we remind you of the other articles related to shipping to the UK on our blog in the UK category. Whether you are just starting out on your e-commerce adventure or if you are already active, this series of articles will expand your knowledge of shipping to the British Isles.

DDP, DDU – what do these abbreviations mean?

Incoterms

At the outset, it is worth knowing what the terms associated with DDP and DDU are. INCOTERMS (International Commercial Terms) translated literally, are international terms of sale. These are general rules used in trade worldwide. They regulate the costs and responsibilities of the seller as well as the buyer, and also specify the type of transport of the purchased product. The INCOTERMS were published in 1936 by the International Chamber of Commerce and are revised on average every 10 years.

The rules for DDU and DDP – INCOTERMS – consist of 11 trade rules. Remember, however, that INCOTERMS arenot a sales contract and have not been developed for every type of goods. Among other things, they do not cover the specifications of the goods sold as well as the currency or method ofpayment forthe goods.They also do not deal with imposed customs duties and restrictions on the export and import of goods.

The rules are divided into two categories:

• rules for each type or mode of transport (includes 7 rules:) EXW, FCA, CPT, CIP, DAP, DPU, DDP,
• rules forsea and inland waterwaytransport (includes 4 rules): FAS, FOB, CFR, CIF.

In this article we will address 2 rules from the first of these categories, namely DDU and DDP.

DDU and DDP

DDU – what does the acronym stand for? DDU, or actually Delivered Duty Unpaid literally means “delivered, duty unpaid“. This means that the seller delivers the goods to the recipient via courier, but without paying the customs duty and any border fees in advance. The seller in this model pays all other costs associated with the goods, such as shipping costs, insurance, etc.

What does this mean in practice? Among other things, it means that a person buying, for example, shoes on Marketplace, pays £150 and the courier, during delivery, will expect to be paid the value of the duty. As this duty has not been paid in advance, the customer may consequently be dissatisfied with the service.

See how to start selling to the UK in 5 steps: Sending to the UK: EORI number – What is it ?

What if, on delivery and collection from the courier, the parcel is damaged?

DDU does not ensure that the parcel is delivered directly to the customer’s door (door to door). The customer orders to his address, but the unloading should be done by the recipient. If the goods are damaged during unloading, the risk also lies with the buyer. So we have a doubly dissatisfied customer.

Do you already know what DDU is? Is it a cost-effective form of shipping? It is certainly not convincing. Let us now focus on the next point, viz:

DDP – what specifically is it? DDP from Delivered Duty Paid means that the seller is responsible for the costs and formalities of import clearance and the goods are delivered to the recipient with all documents. Therefore, the seller is liable for the costs associated with the delivery and customs clearance of the parcel.

What if the package is damaged? The seller is responsible for the costs.

Seller’s and buyer’s responsibilities

Every seller, whether operating in e-commerce or land-based trade, has duties as well as rights. The first most important is to make information about yourself available to the buyer. So, your website must include details such as:

• the name of the company and its legal form,
• registered office address and contact details (telephone number, email),
• business registration details (i.e.registration number, name of the registration authority),
• the amount of the delivery costs and their deadline,
• and the rules for returns and complaints on purchased products.

Remember that you are obliged to provide the buyer with the possibility to complain as well as to return the goods. You must also specify within what period of time the buyer can make a return and within what period of time a refund for the returned product is implemented. These terms and conditions should be transparent to every buyer, as this is a kind of protection for you against potential fraudsters on the internet.

And have you thought about what responsibilities the buyer has?

These days, the rights of the buyer are greater than those of the seller. The customer has more and more options and is treated as a priority, after all, as the popular saying goes, “The customer is our master“. From the moment the buyer clicks the ‘Buy and pay‘ button, he or sheis bound by the sales contract, which requires payment to the seller for the purchased goods. In the event that the buyer has chosen the payment method “Payment on Delivery”, he is obliged to pay upon delivery of the package by courier. Alternatively, if the parcel is delivered to a selected point, at the collection point. However, the most important of the consumer’s rights is that he can always withdraw from the purchase contract. The buyer has the right to withdraw from the contract without giving any reason within 14 days of the delivery of the package. Regardless of whether it was a purchase through DDP or DDU. The consumer must send the package back to the address on the seller’s website (according to the instructions provided).

For international trade – bet on Global24!

Shipping parcels to the UK with Global24 is a shot in the arm! We were probably the first in Poland to send parcels to the UK just a few days after BREXIT. For DDP we provide our partners with a return address that they can use free of charge. This is very important if you want to start expanding into the UK market!

We also ship overseas to other countries including Germany, France, Austria, Spain and Italy. Wondering why you should trust us? We offer the best delivery times (from 48hrs in the UK and up to 24hrs in EU countries). We also process returns from overseas buyers – a return label can be generated in the system, so recipients do not incur costs. Choosing Global24, is choosing a proven and reliable logistics company! Ready to send your parcel? Use our services, receive an instant quote for your shipment and join the ranks of our satisfied customers.

Feel free to contact us!

BONUS

See in the short video the differences between DDU and DDP