DDP shipment to the US
“Delivered Duty Paid” (DDP) is used in international trade to describe a transaction in which the seller of the goods agrees to bear all costs, until the goods reach the contractually agreed destination.
If the agreed terminal destination is the buyer’s port, the buyer must only assume the responsibility for unloading and transporting the goods from the port to his/her warehouse.
Since the seller bears most of the risk in such contracts, all associated costs are reflected in the selling price. As a result, buyers usually pay a higher price for the item.
DDP shipment to the US fee details: CIF price + destination port fee local charge + door-to-door fee + destination port tax
Is DDP a good idea when shipping from China to the US?
The best thing about DDP for customers is that they just have to pay for the order and wait for it to arrive – everything that happens in between, including the import/export process, is the responsibility of the seller.
This convenience and overall higher service standards create a more positive customer experience for buyers, which in turn promotes higher levels of trust and customer loyalty.
When to use DDP shipment to the US?
In summary, the ideal time to consider using a DDP is when supply chain costs and routes are stable and predictable.
As an importer, you can use these terms freely if you are confident in shipping products into your country and have a successful track record of delivering to other customers under DDP shipment to the US.
Or, choose DDP when you can trust your suppliers and their freight forwarders.
If you choose DDP shipment to the US, you should do these:
1. Buy a warehouse-to-warehouse cargo transportation insurance to avoid accidents during transportation.
2. Find a freight forwarder with experience and strength.
Because DDP involves a lot of expenses, if you encounter an inexperienced freight forwarder, if there is an error or omission, it will cause a loss.
When the consignor makes an inquiry to the freight forwarder, he must explain the condition of the goods clearly, especially the name of the goods, which must be specific and in both Chinese and English. Six digits are enough, because the last four digits are based on the HS of each country, and the CODE is not the same. The exact address and zip code of the destination. Maybe the FOB value etc.
DDP shipment to the US, the seller is obliged to:
Handle all export clearance procedures at the origin, including all export licenses, quotas, special documents, etc. related to the goods.
Cover the transportation costs from the packing area to the designated delivery point.
Arranging contracts of carriage with various carriers up to the named place of delivery, including any applicable forwarding.
Ensuring that all risks are covered to the agreed delivery location.
Ensuring that the goods reach their destination, as the seller’s risk and liability ceases only when the goods reach the agreed place of delivery.
Arranging and paying for customs clearance at the port of destination, all duties and VAT (if applicable) and all charges of the carrier up to the agreed place of delivery.
