DDU vs. FCA

Attribute	DDU	FCA
Delivery Terms	Delivered Duty Unpaid	Free Carrier
Responsibility for Delivery	On the seller until goods reach the named place of destination	Transferred to the buyer once goods are delivered to the carrier
Transportation Costs	On the seller	On the buyer
Delivery Location	Named place of destination	Named place of delivery to the carrier

Definition and Overview

DDU, which stands for Delivered Duty Unpaid, is an international trade term that indicates the seller is responsible for delivering the goods to a named place of destination without paying duties. On the other hand, FCA, or Free Carrier, is a trade term that means the seller delivers the goods to a carrier or another person nominated by the buyer at a named place. Both terms are commonly used in international trade to specify the responsibilities of the buyer and seller in a transaction.

Responsibilities of the Seller

Under DDU terms, the seller is responsible for delivering the goods to the named destination without paying duties. This means that the seller must arrange for transportation, insurance, and any necessary documentation to get the goods to the buyer's location. On the other hand, with FCA terms, the seller's responsibility ends once the goods are delivered to the carrier or nominated person at the named place. The buyer then assumes responsibility for transportation, insurance, and any duties or taxes that may apply.

Transportation and Delivery

With DDU terms, the seller is responsible for arranging transportation to the named destination. This includes selecting the carrier, booking transportation, and ensuring the goods are delivered to the buyer's location. In contrast, under FCA terms, the seller is only responsible for delivering the goods to the carrier or nominated person at the named place. The buyer then takes over responsibility for arranging transportation from that point forward.

Insurance and Risk

When it comes to insurance and risk, DDU terms place the responsibility on the seller to insure the goods during transit to the named destination. The seller is also responsible for any risk of loss or damage to the goods until they are delivered to the buyer. On the other hand, with FCA terms, the risk passes from the seller to the buyer once the goods are delivered to the carrier or nominated person at the named place. The buyer is then responsible for insuring the goods and any risk of loss or damage during transportation.

Customs Duties and Taxes

One of the key differences between DDU and FCA terms is the treatment of customs duties and taxes. Under DDU terms, the seller is responsible for paying any duties or taxes that may apply to the goods until they are delivered to the buyer. This can simplify the process for the buyer, as they do not have to worry about customs clearance or paying additional fees. In contrast, with FCA terms, the buyer is responsible for customs duties and taxes once the goods are delivered to the carrier or nominated person at the named place. This means the buyer must handle customs clearance and pay any applicable fees.

Flexibility and Control

DDU terms offer the buyer more control over the transportation and delivery of the goods, as the seller is responsible for arranging everything up to the named destination. This can be beneficial for buyers who want a more hands-off approach to international trade. On the other hand, FCA terms give the buyer more flexibility and control over the transportation process, as they can choose the carrier and arrange for transportation from the named place. This can be advantageous for buyers who have specific requirements or preferences for shipping.

Conclusion

In conclusion, both DDU and FCA terms have their own set of attributes and responsibilities for buyers and sellers in international trade. DDU places more responsibility on the seller for transportation, insurance, and customs duties, while FCA gives the buyer more control over these aspects. Understanding the differences between these terms can help businesses make informed decisions when negotiating international trade agreements.