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What is DDP shipping
DDP (Delivered Duty Paid) shipping, which means “delivery at destination, duty paid”, is an important trade term in international logistics transportation. It means that the seller is responsible for transporting the goods from the exporting country to the destination designated by the importing country, and bears all costs and risks in the whole process, including but not limited to transportation costs, insurance costs, export and import tariffs, value-added tax and other taxes.
In the DDP transportation mode, the seller has the greatest responsibility and the buyer has the least risk, so the buyer only needs to receive the goods at the destination without worrying about complicated processes such as transportation and customs clearance, which greatly simplifies the transaction process
DDP Shipping from China
DDP shipping from China means that the goods are shipped from China to the destination without the buyer having to pay any additional customs clearance fees. This shipping method is particularly useful for businesses looking to reduce their international shipping costs. DDP shipping makes it easier for buyers to accurately calculate shipping costs and ensure that they are not overpaying for customs clearance fees. This shipping method can also help businesses save time because they don’t have to worry about dealing with customs paperwork and delays.
Ways to do DDP Shipping from China
Sea Freight DDP Shipping From China
Sea freight is one of the most commonly used methods of DDP shipping, especially for large and heavy goods. DDP by sea means that the seller transports the goods from the exporting country to the port of the importing country by sea. During the entire transportation process, the seller is responsible for all costs and risks such as shipping costs, export and import duties, taxes, insurance premiums, etc. After the goods arrive at the port of destination, the buyer can bear the further transportation and customs clearance matters at the port.
Features:
- Long shipping time: Sea transportation takes a long time, usually from a few weeks to several months.
- Relatively low cost: Compared with air and rail freight, sea freight costs are relatively economical, especially for long-distance transportation.
- Suitable for large quantities of goods: Sea freight can transport large quantities of goods, and there are fewer restrictions on the size and weight of goods.
Air Freight DDP Shipping From China
Air freight DDP transportation is suitable for small quantities of goods with high timeliness requirements. Air freight DDP is to transport goods from the exporting country to the airport of the importing country by air freight. Compared with sea freight, air freight DDP is faster and safer, but the price is relatively high. The seller also bears all costs and risks during the entire transportation process, including air freight, tariffs, taxes, etc. Air freight DDP is suitable for electronic products, clothing and other products with time requirements and small volume and weight.
Features:
- Fast speed: Compared with sea freight, air freight transportation time is greatly shortened, and it can usually reach the destination within a few days.
- High cost: The cost of air freight is high, suitable for light but time-sensitive goods.
- Suitable for small batches of goods: The transportation volume of air freight is limited, and the cost will increase when the goods are too large or too heavy.
Rail Freight DDP Shipping From China
Rail freight DDP is another mode of transportation, suitable for countries and regions that can be reached by land, such as Central Asia and Europe. Rail freight DDP is between sea freight and air freight in terms of speed, safety and cost, and is a cost-effective option. The seller is responsible for transporting the goods to the destination by rail and bears the relevant costs and risks.
Features:
- Moderate freight time: faster than sea freight, slower than air freight, usually takes two to four weeks.
- Moderate cost: The cost of rail transport is between air transport and sea transport, which is suitable for medium-sized cargo transport.
- Suitable for China-Europe trade: The China-Europe Express has greatly promoted trade between China and Europe, and rail transport has become one of the important ways of import and export trade.
Benefits of DDP Shipping
Reduce costs
Under the DDP transportation method, all costs and risks are borne by the seller, including customs duties, value-added tax, transportation charges, etc. The buyer only needs to receive the goods at the destination and can focus more on his own business. This greatly reduces the buyer’s financial burden. For the seller, although the initial investment is large, the cost can be reduced through economies of scale and optimized logistics processes.
Transparent prices
Under the DDP mode, the price paid by the buyer is the final price including all costs. No additional fees are required after the goods arrive, avoiding uncertain tariffs or other hidden costs, and the buyer can accurately budget the purchase cost in advance.
Reduced risks
Under the DDP transportation mode, the seller is responsible for the entire transportation and customs clearance process. Once the goods are lost or damaged, the seller will be responsible for compensation, thereby reducing the buyer’s risk and reducing disputes and conflicts in import and export trade. In addition, when arranging transportation and customs clearance, the seller usually chooses experienced logistics companies and partners, which further reduces the uncertainty in the transportation process.
Faster customs clearance process
In DDP transportation, the seller needs to prepare all customs clearance documents and complete customs clearance procedures in advance to ensure that the goods can pass through customs quickly, simplifying the transaction process. It enables buyers to receive goods faster and put them into production or use. Compared with other modes of transportation, DDP transportation can effectively reduce customs clearance delays and improve the transportation efficiency of goods
DDP Shipping Process from China
Agreeing on Contract Terms
The seller and buyer need to clearly use DDP trade terms when signing the contract and agree on the specific delivery location and costs. The seller needs to make a detailed estimate of all costs involved in the transportation process and indicate in the contract that the seller bears all costs and risks of transporting the goods to the designated destination in the importing country.
Cargo Preparation and Information Collection
The seller needs to ensure that the goods have been produced and packaged in accordance with the contract requirements, and collect detailed information on the shipper and consignee, as well as the name of the goods, HS CODE, weight, number of containers, etc.
Selecting a Logistics Service Provider
Based on factors such as the condition of the goods, transportation time requirements and freight, choose a suitable freight forwarding company or contact the shipping company, airline, etc. directly to book a space.
Transportation and Customs Clearance
The seller arranges the transportation of goods according to the terms of the contract. The seller is responsible for transporting the goods from the place of production to the export port or airport and preparing the necessary customs declaration documents. During the transportation of the goods, the tracking system provided by the logistics service provider is used to understand the transportation status in real time. After arriving at the port of destination or airport, the seller is responsible for handling import customs clearance procedures and paying customs duties and other related fees. During the transportation of goods, the seller needs to ensure that all documents are complete according to the regulations of different countries.
Pickup and delivery
After completing the customs clearance procedures, the seller picks up the goods from the port or airport and arranges the delivery service according to the consignee’s address to ensure that the goods are delivered to the buyer on time and safely.
Signature confirmation
Finally, the seller needs to ensure that the goods are signed by the buyer and obtain the signature confirmation to complete the entire DDP transportation process.
Notes on DDP shipping from China
Learn about the specific content of DDP terms
The DDP clause requires the seller to transport the goods to the destination specified by the buyer and bear all related costs and responsibilities, including transportation, insurance, customs clearance procedures and duties. The seller needs to clarify the specific costs and responsibilities included in the DDP price to avoid disputes later.
Be familiar with the import policies and regulations of the destination country
The seller needs to have a deep understanding of the import policies and regulations of the destination country, including import licenses, tariff rates, import restrictions, etc., to ensure that the goods can be cleared smoothly and comply with local legal requirements.
Preparation of customs clearance documents
DDP transportation requires the seller to be responsible for customs clearance, so it is crucial to prepare the correct customs clearance documents. The documents generally required include:
- Commercial invoice: must accurately list the value, description and quantity of the goods.
- Packing list: lists the specifications, quantity and net weight/gross weight of each piece of goods.
- Bill of lading: issued by the carrier to prove that the goods have been transported.
- Certificate of origin: proves the origin of the goods for use when clearing customs in the destination country.
- Import license: Some goods (such as food, medicine or chemicals) may require an import license, which the seller must confirm and obtain before shipment.
- Other specific customs clearance documents: Depending on the requirements of the destination country, specific documents are sometimes required (such as inspection and quarantine certificates or test reports for special goods).
Keep in touch with the buyer
During the entire DDP transportation process, the seller needs to maintain close communication with the buyer and inform the progress of the transportation and possible problems in a timely manner so that the buyer can be prepared to receive the goods.
Choose the right logistics partner
Sellers need to choose the right logistics partner to ensure that the goods can reach the destination safely and quickly. Ubest Shipping has rich experience and expertise to deal with various problems that may arise. You can contact Ubest Shipping for a quote.