China to Europe Transport and Freight DDP vs DDU Incoterms Guide 2025
The transportation from China to Europe through DDP and DDU is a topic that every cross-border trade company cannot avoid. As the international trade volume between China and Europe grows year by year. According to the data of the European Union Customs Administration, the transportation trade volume from China to Europe increased by 8.7% year-on-year. Therefore, choosing the right DDP transportation or DDU shipping is like a flock of geese leading the migration. Once the direction is wrong, the entire team may be ruined.
This article will help you understand the logistics terms DDP and DDU in detail, as well as how to choose DDP or DDU in transportation from China to Europe. Importers choose the right mode of transportation not only affects the customs clearance process, customs clearance fees, transportation time, but also affects customer satisfaction, thereby increasing corporate profits.
What are the incoterms DDP and DDU?
DDP and DDU are two types of international trade terms formulated by the International Chamber of Commerce. The role of international trade terms is to define the responsibilities, risks and cost ratios between buyers and sellers. It promotes trade fairness and reduces trade risks. It is not a regulation, but requires an agreement between the two parties to take effect.
What is DDP in shipping from China to Europe?
Incoterms DDP means “duty paid after payment”. In the DDP model, the seller needs to be responsible for the entire logistics process, including import and export transportation, insurance, customs clearance, and tax payment. That is, the seller bears the greatest responsibility. The buyer only needs to provide some customs clearance documents and wait at the agreed location without having to pay any additional fees during the transportation process.
Assuming you are a German buyer who uses the DDP model, what the seller needs to do is:
1. Arrange and pack the goods and transport them to German ports or airports;
2. Handle relevant procedures for exporting from China to Germany;
3. Pay international transportation costs, including insurance;
4. Transport the goods to the warehouse or address agreed by the customer;
5. Handle German import customs clearance procedures and pay import taxes, value-added tax, environmental protection tax, etc..
6. The last step is to deliver the goods safely to the customer.
Advantages of DDP Transportation
Compared to other modes, the cost of DDP is fully presented at the beginning, and customers do not need to worry about the cost. The goods can reach the customer in a normal time.
The seller bears the cost of cargo damage and detention during transportation, providing buyers with the greatest profit guarantee, improving the customer shopping experience, and enhancing the trust value of the enterprise.
The convenience and safety of DDP transportation have increased the sales of high-risk and high-value goods. Such items are time-sensitive, and if there are customs clearance obstacles, additional costs, or delivery delays, the buyer may suffer heavy losses.
Sometimes DDP Transportation is not the best option
1. For low-price, low-profit, and low-quality goods, using DDP transportation may make you earn nothing, or even lose money.
2. Although DDP seems to be beneficial to both buyers and sellers, sellers need to have professional international logistics knowledge. The regulations, customs clearance procedures and policies of various countries will affect your profits.
3. Low risk does not mean no risk. Buyers’ refusal to accept will make you fail. Be sure to communicate clearly with buyers, especially newbies, to avoid brand damage due to cognitive bias.
What is DDU Incoterms？
DDU Incoterms means “Delivered Duty Unpaid”. This trade term refers to the delivery of goods and transfer of risk between the buyer and seller at an agreed place in the importing country (usually a port or the buyer’s city). Before the goods arrive at the agreed place, the exporter is responsible for all costs and risks, including customs clearance fees, freight, and insurance fees in the exporting country. After the goods are delivered, the costs and risks are borne by the importer, including import taxes, VAT, transit fees, etc.
Interestingly, DDU is an outdated Incoterms. It is an Incoterms from 2000. It has been replaced by DAP in the Incoterms of 2010, but it is still widely used. The difference between the two is that DDU requires the buyer to bear the import customs clearance and duties, while DAP transfers these costs and risks to the seller. DAP simplifies the process for the buyer unless otherwise agreed.
Benefits of DDU Incoterms for Shipping from China to Europe
For sellers who are not familiar with the importing country’s tariffs, there is no need for customs clearance and delivery of tariffs, which not only reduces risks but also reduces overall costs. Attract customers to choose your business
For local companies familiar with customs clearance, the DDU Incoterms allows them to freely and flexibly choose customs clearance time and freight forwarders they trust. It can reduce costs, improve efficiency, and make companies more competitive in the market
What are the disadvantages of DDU Incoterms?
1. Under the DDU model, the buyer needs to bear the import duties and customs clearance, which may be confusing for buyers who are not familiar with DDU, because the seller’s quotation is incomplete. Therefore, it is necessary to communicate clearly with customers to avoid customer returns and affect the corporate image.
2. Under the DDU model, buyers need to pay import duties and customs clearance by themselves. For buyers who are not familiar with the customs clearance policy, delivery time may be delayed, resulting in detention or return fees.
Key points of DDP vs DDU before shipping from China to Europe
Different countries have different import policies, customs clearance procedures, supervision levels, and rates. You need to understand them clearly before you plan to buy goods from China to avoid unnecessary trouble.
Transport and Freight from China to Germany
Deutschland is the largest economy in Europe. Its customs clearance policies and strength are as rigorous as its craftsmanship.
Germany’s VAT standard rate is 19%, and the preferential rate is 7%. Germany’s customs documents are strictly reviewed. Before importing, you must ensure that your invoice, packing list, and product declaration materials are complete and accurate. The HS code must be accurate; otherwise, it will cause high fines and inspections. Don’t forget or use the wrong products that require CE certification.
The German e-commerce industry is developing rapidly, and DDP is a transport and freight recommended because of its high certainty and low risk, greatly increasing the possibility of buyers repurchasing and can also enhance brand reputation.
Transport and Freight from China to France
The standard tax rate in Frankreich is 20%, and for special products like books and food, it can be as high as 5.5% or 10%. France has a high frequency of random inspections, especially for personal care, beauty, health food, nutritional supplements, and electrical appliances.
For transport and freight in the French market, it is recommended to use DDP and use professional freight forwarding companies such as VIPU Logistics to bear all costs and avoid the impact of not understanding customs clearance and tariffs.
Transport and freight from China to Italy
The standard tax rate in Italien is 22%. The customs clearance process is relatively conservative, and the documents must be complete and compliant. Due to the lack of access to small language countries and border areas, the probability of declaration errors is increased. Missing relevant documents, misreporting categories, and no product labels are the main reasons for declaration failures.
For Italian B2C e-commerce buyers, DDP is recommended for transport and freight to ensure customer shopping experience and reduce complaints. For B2B large customers, DDU is recommended, which is cheaper and customers can freely choose the customs clearance time.
Transport and Freight from China to Poland
The VAT rate in Poland is 23%, and the customs clearance policy is very friendly. The time efficiency of China Railway to Poland is about 7 to 13 days. Some cities, such as Warsa,w have a mature customs clearance system, which is suitable for small and medium-sized e-commerce companies or bulk traders.
You can choose DDP or DDU for transportation from China to Poland, depending on your own situation. DDU is suitable for customers who want to start at a low price, while DDP is more suitable for buyers who value price second and experience first.
China to Europe Shopping Efficient and Reliable China Freight Forwarder
After reading the above, do you have a more detailed understanding of DDP and DDU? Do you want to start your logistics journey? Vipu has professional international logistics knowledge and rich logistics experience to help you get the most suitable logistics solution for you. Based on years of experience, Vipu can help you reduce business risks, and we are committed to improving customers’ shopping experience.
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