Does DDU inclusive of unstuffing at the destination from the Shipper point of view?

Without knowing the specifics of the deal, technically speaking risk and responsibility of the goods rests with the seller (you) up to the named place of destination in the DDU terms. That being said, the seller is technically not required to purchase insurance but it would be wise to do so: for the exact situation that occurred with your shipment to the buyer. If it was me I would not rely on your transportation company’s perspective – they are giving you advice from a transport company perspective only, they are not the experts when it comes to the relationship with your buyer.

All that being said, it can be argued exactly how much cargo damage you (the seller) should pay depending on what you and your buyer both agreed upon when negotiating the sale. As I have no idea what you negotiated I can not say. But ultimately what it boils down to is: how much do you value your customer? Was this a one time buy from a new / dubious buyer? Or is it a regular customer who frequently purchases from you? If it is a valuable customer you should probably consider covering the total cost of the cargo claim to keep them happy. If it is a large amount and you don’t want to set a precedent for future mishaps, make sure your customer knows that you are doing this as a professional courtesy and to keep their good business but that you will not cover such losses in the future; remind them that you advised them to purchase their own cargo insurance and should they decline to purchase their own insurance in the future you will not cover any losses.

No matter what you should go after the transport company for losses but they are correct that they will only cover losses up to the limits in the transport rules of reimbursement. Unless you purchased additional cargo insurance at a premium from them, they will not cover a penny more.

Whenever I deal with clients who sell goods on a DDU basis I always strongly suggest that they have cargo insurance coverage for their shipments all the way up to the named destination in the DDU sale. Because if there is a problem the buyer is always going to come to you, the seller, and under DDU terms expect the seller to cover the full costs of any damages. If you are a large enough company with multiple shipping transactions you can probably get a blanket cargo insurance umbrella from your existing insurance carrier. Be sure that you are comfortable with any deductibles you agree to.

All the above is a general guide only based on the very limited info provided. For true, expert advice you should consult your trade attorney or insurance broker.

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What the buyer needs to do is clarify with the seller the exact delivery point in the named incoterm and also whether the seller is including insurance coverage up to that named point.

In both cases the buyer is responsible for all import customs formalities and payment of customs duties. However, the main differences between the two incoterms:

CIP – normally up to destination port only and seller is technically obligated to include insurance

DDU – seller often includes destination delivery to buyer’s designated delivery address, but not always. Seller is not obligated to include insurance.

Hope this helps. This is an interpretation based on the limited information given and should be considered a guide only. A professional trade attorney would be best suited to legally answer your question.

Can I assume meaning of the trade term “DDU” has been covered as cost + Freight + Insurance including the commodity is delivered at the buyers destination (exclulding the charges and responsibility of customs clearance in the country of the final destination).

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Ramakrishnan.