What does DDP shipping from China mean?
DDP, or Delivered Duty Paid, is a shipping method used by sellers to ship out the goods to their customers where they shoulder all the cost of shipping, including taxes, clearances, and duties from customs. Thus, they will get the products straight to your doors or agreed destination without doing anything on your end.
Ideally, when a seller uses DDP shipping from China, the total price is shown to the client already includes the price of the goods, import or export fees, taxes, tariffs and duties to Customs, and shipping fees to inland delivery.
Agreement for DDP shipping from China : Buyers and Sellers Responsibilities
In this agreement, the supplier (seller) is liable for all shipping arrangements, including the import customs fees, until the goods are delivered to the buyer. DDP shipping from China means the supplier must pay for all import and export costs, and the buyer is not responsible for any fees related to the shipping of the cargo.
The buyer is essentially not responsible for any part of the logistics process, except for receiving the goods. Part of receiving the goods is the unloading process.
Any unloading fees are the responsibility of the buyer, so the buyers need to understand these costs, especially when shipping to fulfillment warehouses.
The buyer needs to understand, this Incoterm only focuses on the shipping costs, import and export duties, and taxes, any fees beyond that will most likely fall on the buyer.
Typically, the seller will bundle the total shipping costs, called landing costs, which serve as a cumulative quotation for services. When a seller is quoting a product, they will most likely quote the combined value of their product as DDP shipping from China.
When a seller quotes a price and includes the Incoterm abbreviation, DDP shipping from China, it means the cost of the goods is including the delivery and duty charges.
Seller’s responsibilities go beyond the delivery of final goods and include:
● Drafting sales contracts and related documents
● Meets all import and export requirements
● Pay all import and export duties and taxes
● All shipping costs, including delivery to the final agreed upon destination
● The cost of all government inspections
● proof of delivery
● Supplier is responsible for damage or loss in transit
Who will use DDP shipping from China?
Sellers from marketplaces like Alibaba, eBay, Taobao, Made in China, 1688, Pinduoduo, Global Sources, and other B2B platforms use DDP for delivery.
Additionally, this shipping method is used by most sellers targeting small business owners in B2B e-commerce and B2C customers that direct consumers buy from these sellers.
You can use DDP shipping from China when shipping your goods internationally by air or sea. Buyers and sellers must agree on all payment information and name the destination before completing the transaction. Once the product reaches its destination, it is now at the buyer’s risk.
Why is DDP shipping shipping from China so important?
DDP shipping is important because using it correctly can guarantee buyers peace of mind. At the same time, if the DDP is done correctly and successfully, then a good relationship with the seller is established. When it is beneficial to both parties, it will encourage both parties to continue and grow the business.
International businesses can benefit even more from DDP because they don’t have to worry about all the issues that may arise in transit. Seller will be responsible for delivering the goods in accordance with its DDP terms of carriage.
What must be paid attention to in DPP shipping from China?
In the overall operation process of the necessary conditions for DDP shipping from China, although the export company has no legal obligation to sign an insurance contract with the importer, considering that the safety risk in the entire delivery process must be borne by the export company.
Export The company chooses to invest part of the transportation insurance in the daily transportation work to avoid the safety risks in the transportation of goods.
If the importing and exporting parties agree to exclude some expenses that must be paid in the whole process of importing the goods from the legal obligations of the exporting company through negotiation. Then it should be specially marked with relevant words in the contract.
For example, if VAT is to be excluded, the words “delivery after tax payment, VAT not paid” should be added to make the relevant contract terms clear.
Under the DDP shipping from China requisite, the importer must be responsible for unloading the goods from the carrier at the specified destination, while the exporting company must ensure that the goods can be unloaded.
Therefore, in the process of signing the transportation contract, the exporting company should pay attention to clarifying the above delivery address, because unless there is a contract between the two parties, the cost of loading and unloading goods paid by the exporting company at the destination cannot be paid to the buyer. demanded payment.
DDP shipping from China Use Scenarios
You can use it in the following cases:
For small cargo
If your package is not very expensive, and within the allowed quantity or volume, and there is a duty exemption, you can trust your seller and try DDP. However, if you are buying from Alibaba, make sure you are dealing with a company that is trustworthy and well-ranked.
For high value items
You can choose DDP shipping from China when you order high value items and don’t want to clear them through customs. Your goods will be delivered to your door. The seller will cover all shipping and damage and you will be waiting at the designated destination.
Additionally, sellers know that shipping through partner couriers can be expensive, and more delays will cost them more. Therefore, they will only work with reliable freight forwarders with predictable routines or schedules.
FBA shipping to Amazon warehouse
Amazon sellers or other online entrepreneurs use DDP delivery services. When they order from a supplier, they ask them to ship to their warehouse. Sellers can arrange a combination service by air or ocean service + UPS shipping to the Amazon warehouse of their choice.