|
Comparison Aspect |
CIF (Cost, Insurance, Freight) |
DDU (Delivered Duty Unpaid) |
|
Core Responsibility |
Seller pays costs, insurance, and freight to the named port of destination. |
Seller delivers goods to the buyer’s specified destination (any location) but does not pay import duties/taxes. |
|
Risk Transfer |
Risk transfers to buyer when goods pass the ship’s rail at the port of shipment. |
Risk remains with seller until goods are placed at the buyer’s disposal at the destination. |
|
Cost Liability |
Seller pays: - Freight to the port - Minimum marine insurance. Buyer pays: - Unloading - Import duties/taxes. |
Seller pays: - All transportation costs (origin to destination) - Export customs fees. Buyer pays: - Import duties/taxes - Unloading costs. |
|
Transport Arrangement |
Seller selects carrier and books shipping to the port. |
Seller arranges full transportation (including customs clearance to the destination). |
|
Insurance |
Seller provides minimum insurance (CIF-specific). |
Insurance is optional (not required by Incoterms® for DDU). |
|
Customs Clearance |
Seller handles export clearance; buyer handles import clearance. |
Seller handles export clearance; buyer handles import clearance. |
|
Unloading |
Buyer responsible for unloading at the port. |
Buyer responsible for unloading at the destination. |
|
Applicable Transport Mode |
Maritime or inland waterway transport. |
Any transport mode (e.g., sea, air, road). |
|
Incoterms® Version |
Valid under Incoterms® 2020. |
Replaced by DAP (Delivered At Place) in Incoterms® 2010. |
