This incoterm has expired since 01-01-2011 and has been replaced by DAP or DAT.
Delivered Duty Unpaid (DDU) means that the seller fulfills his delivery obligation when the goods have been delivered at the designated location in the importing country. The seller bears the risks and costs in connection with the transport to that location, with the exception of duties, taxes and other official levies payable upon import and excluding the costs for customs formalities to be fulfilled.
If the parties want the seller to fulfill the customs formalities and bear the corresponding costs and risks, this must be made perfectly clear by using words to that effect.
If the parties wish to add some of the costs payable for the import of goods (such as value added tax (VAT) ) to the seller’s obligations, this must be made perfectly clear by using words to that effect: delivered duty unpaid, including VAT, etc. (agreed destination).