DDP (Delivered Duty Paid) “delivery after duty payment” means that the seller will transport the goods to the buyer’s specific address after applying for import customs clearance at a specific destination. If the goods have not been unloaded, they will be handed over to the buyer.
For DDP sea shipping to USA, the seller must bear all the security risks and expenses of transporting the goods to a specific destination, including the payment at the destination when the customs department must apply for formalities. All taxes (including legal obligations and security risks to apply for customs clearance procedures, as well as payment of handling fees, import duties, taxes and other miscellaneous charges.
DDP sea shipping to USA operation process
1.Arrange the specific cargo information to the freight forwarder, consult the specific freight and other costs, if you require DDP sea shipping to USA, the freight forwarder will usually quote you a one-in-one all-inclusive price, that is, you only need to prepare the goods for delivery to the designated address of the freight forwarder or the freight forwarder to pick up the goods.
2. After consulting the freight, place an order for the freight forwarder, and arrange for the goods to be transported to the designated address of the freight forwarder or the freight forwarder to pick up the goods.
3. After receiving the goods, the freight forwarder will confirm the weight and cost with you, and arrange the shipment of the goods. If you need to do general trade declarations and customs declarations, you can get a normal tax refund.
4.Shipping from China to the US customs for customs clearance and tax payment
5. Delivered to the recipient in the United States.
Tips: Because the DDP sea shipping to USA double clearance tax fee is not static, the shipping fee will change due to various factors.
2 modes of customs clearance of DDP sea shipping to USA
1. Clear customs in the name of overseas consignee. Without a bond, it is impossible to clear customs in the United States! In this type of mode, the overseas consignor poa gives us the United States (powerofattorney power of attorney), and the bond of the American consignor is required.
2. Clear customs in the name of shipper. For this type of customs clearance, the shipper comes to poa for us, we transfer to the United States, and the United States helps the shipper in the United States importer customs registration number importerrecordofno. In addition, a shipper is required to purchase a bond.
No matter which of the above two modes, customs clearance in the United States requires the taxid (also called irsno) of the American cargo person to clear the customs. At that time, the taxid of the American cargo person is required to be the tax number.
Bond is divided into single bond (single bond) and annual bond (annual bond). Shippers in China can only purchase annual bonds and cannot purchase single bonds.
Therefore, in order to make the actual operation smooth, it is recommended to confirm with the American cargo person whether they have a bond and whether it is OK to use their poa and bond for customs clearance. If the shipper does not agree to use their bond, the Chinese shipper must purchase the bond.
U.S. importers should purchase BOND with customs accordingly. In the past, even if there was no ISF requirement, customs clearance was also necessary.
You can also buy continousbond (also called annualbond, you only need to buy the total once a year, suitable for importers who often import goods), or buy singlebond (buy a single one-time ticket separately), if you buy continousbond, you don’t need to buy it again. For other ISFbonds, if you are buying singlebonds, you should buy other ISFbonds accordingly.
Differences between DDU and DDP sea shipping to USA
1. Different import declarations: DDU is for the seller to handle import declarations and bear the pre-delivery costs;DDP sea shipping to USA is for the buyer to handle import declarations, undertake the responsibility and risk of customs formalities, and pay handling fees, duties, taxes and other fees.
2. Different delivery methods: DDU is the delivery without duty payment at the destination port, and the goods are handed over to the buyer at the designated destination for disposal; DDP sea shipping to USA is the delivery after duty payment at the destination port, which means that the seller has completed the import customs clearance procedures at the designated destination. , deliver to the buyer the goods that have not been unloaded on the delivery vehicle.
3. Risk bearing: It is mainly the question of who will bear the risks and expenses during the import customs clearance process of the goods at the destination port.
If the exporter has the ability to complete the import declaration, then DDP sea shipping to USA can be selected. If the exporter is not able to handle the relevant matters, or is unwilling to handle the import formalities, bear the risks and costs, then the DDU term should be used.
How to reduce DDP sea shipping to USA clause risk?
To reduce risks, exporters can start from several aspects:
1. Buy shipping insurance
The role of transportation insurance is to allocate risks and reduce unknown risks to avoid losses.
2. Reduce intermediate trade links
In international trade, the fewer intermediate trade links, not only can reduce the cost of exporters, but also improve the efficiency of delivery. In this regard, Xiongda recommends that the seller choose a strong freight forwarder for cooperation, and entrust the freight forwarder with full authority for shipping and customs clearance. Because DDP sea shipping to USA involves a lot of costs, if you entrust an inexperienced forwarder, there will be errors or omissions, which will cause losses.