Cost structure

Why DDU still appears in old contracts and what replaced it

Buyers often ask what ddu and dap replacement costs. The useful answer is which line items move, and who controls each one.

Charges set before loading: pre-2010 contract language

DDU was removed from the official Incoterms rules in 2010; DAP is the modern term that covers delivery to a named place with import clearance left to the buyer.

We quote these separately so a landed-cost model does not hide them inside a single freight number.

Charges that depend on the declaration: duty responsibility gap

Older sales contracts and ERP templates still print DDU, which creates arguments about who pays destination duties and terminal charges.

This is the line most likely to change if the description or classification is amended.

Charges that appear after arrival: clause rewrite

Rewrite the clause with a named place and an explicit statement of who handles import clearance and taxes before the next booking.

We flag these in advance rather than presenting them as a surprise on the arrival invoice.

The failure point we see most often: Carrying a DDU clause into a new contract and assuming the seller will clear import duties at destination.

Have these ready before filing:

Commercial invoice and packing list with matching values and descriptions.
Classification, origin and any licence references used in the declaration.
Booking reference, transport document and the consignee’s broker contact.

Questions importers ask us

Who is responsible for getting this right on a China-origin shipment?

The shipper supplies accurate product and value data; Hovmar Logistics checks the file before submission and coordinates with the destination broker. We confirm the split in writing at booking.

Can Hovmar review this before the cargo leaves Shenzhen?

Yes. Send the commercial invoice, packing list and intended classification before cutoff and our customs desk will flag gaps while they are still easy to fix.

Where this fits in your shipment

Planning a shipment from Shenzhen?

Request a routed freight quote · Chat on WhatsApp · info@hovmar.com

Notes from the Hovmar Logistics customs desk in Shenzhen. Confirm current requirements with your licensed broker before filing.