How To Understand Landed Duty Paid (LDP)?- Xiongda

Landed Duty Paid (LDP) is the final price a retailer or brand pays for goods (especially apparel) imported across borders. Prices include delivery, shipping, insurance, duties and customs clearance.

Taxes paid have long been known, so wholesalers know exactly what to pay when the goods arrive at the port. However, some elements of total pricing are estimates. In the wholesale industry, it is common for wholesalers to sell products before they receive them.

If this is the case, an estimated Landed Duty Paid (LDP) must be calculated to determine a profitable sale price.

Landed Duty Paid (LDP) shipping terms include costs for fabrication, handling, handling, packaging and shipping. Depending on how you import your goods, you may have to pay additional ocean, air and inland LDP shipping charges. Additional costs such as exchange rates, procurement duties, due diligence costs, etc. are included in the overhead.

Landed Duty Paid

What is the difference between Landed Duty Paid (LDP) and FOB?

LDP means “land tax paid” price. The final price the brand or retailer pays for the finished product, including shipping, duties, delivery, insurance, and customs clearance.

FOB means “freight on board” price. The price the brand pays the supplier at the factory gate, before shipping and import fees.

Landed Duty Paid (LDP) must pay attention to the following points:

1. The import at the destination port can be successfully cleared: Since all the overall transportation is handed over to the freight forwarder, the smoothness of the customs clearance at the destination port depends entirely on: whether the local customs import record of the third party is good;

The Whether the operation record of the freight forwarder in the local customs is good, and whether the customs clearance qualification of the local customs clearance bank in the local customs is good;

2. Due to strong seasonality, Landed Duty Paid (LDP) garment transportation often has strict requirements on transportation time. Under normal circumstances, the whole container of goods can be delivered within 3 working days after arriving at the port, and the LCL distribution will be delayed by 1-2 days;

3. In the actual operation process, the requirements on the documents are relatively high, and when the Chinese customs export declaration The data is as accurate as possible (pieces of hair), and AMS and ISF try not to change it.

Landed Duty Paid

What are the advantages of Landed Duty Paid (LDP) ?

High security

Buyers of Landed Duty Paid (LDP) transportation place relatively large orders. As long as the goods are not contraband and the goods and information are accurate, both China and the United States have formal double customs clearance, and there is no risk of false reporting.

Low cost

Different from DDP, the core of Landed Duty Paid (LDP) is that the consignor needs to designate a third-party company to appear at the consignee of the document. Taking textiles as an example, an experienced third-party company can declare the goods at a reasonable price within the price limit. , so that the product has a better price advantage to enter the market.

Increase the time of goods operation and optimize the supply chain

Taking the US market as an example, textiles are a product that pays great attention to the turnover rate of goods circulation. Under the traditional trade model, traders are usually trapped and unstable shipping schedules in order to save intermediate logistics costs. Due to the great optimization of the overall supply chain cost in LDP, traders also have more choices.

Landed Duty Paid

Landed Duty Paid (LDP) risks

1. If the payment has not been received, it will be delivered.

For buyers, the operation mode of Landed Duty Paid (LDP) is more convenient, so the cooperation volume of this transaction method will be more stable than that of FOB and CIF.

In order to ensure the right of goods, it is recommended that the consignor collect the payment for the goods before delivery, and then deliver the goods, so as to control the rights of goods in their own hands as much as possible.

2. Inadequate professionalism.

In order to collect the goods, the freight forwarder was full of promises at first, but after the goods arrived at the destination port, they found that the customs clearance procedures were not complete and could not be cleared.

At this time, the consignor received the news and could only temporarily change the freight forwarder. After the goods arrive at the port, it is not only anxious to find an agent who can undertake it, but also may delay the original delivery time.

3. Landed Duty Paid (LDP) risk.

Under the LDP trade terms, the seller is not only responsible for the cost and insurance of the entire shipment of goods, but also for customs clearance, tax payment and delivery in the destination country. It is recommended that sellers give priority to knowing all operational details and processes when choosing a freight forwarder. In this way, even if there is a risk, the freight forwarding company can respond in time.

Landed Duty Paid

How does the Landed Duty Paid (LDP) deal with risks?

Simplified Bill of Lading

In actual operation, the requirements for documents are relatively high, so the data should be guaranteed to be accurate (pieces of hair) during the customs export declaration, and AM/ISF should try not to change it.

If it is LCL, the number of air freight containers is wrong and must be changed. If the difference between the data of the whole container by sea freight is not large, do not change it.

Control the transit time

For clothing products with strong seasonality, it is necessary to control the transportation time, so as not to miss the sales opportunity and cause unnecessary losses.
Find a reliable freight forwarder for smooth customs clearance.

Since all transportation matters are handled by freight forwarders, the smoothness of customs clearance at the destination port depends more on the freight forwarder’s operational records at the local customs and whether the customs clearance qualifications are good.

Brand authorize

If the seller is making branded goods, the consignee should prepare the authorization so that it can be provided in time for customs inspection, so as to avoid high storage fees and demurrage fees caused by untimely issuance.

Take it easy

If you encounter random inspection by the customs, the unpacking inspection is completed, and the goods are normal, the goods can be picked up in about 5 working days after they arrive at the port. If it is X-RAY inspection, under normal circumstances, 3 working days, NY will be a little slower. All inspection fees are provided with documents.

Ask Best Shipping Rate
shipping charges from China to USA
Shpping Guide
Mark

Cheapest Shipping Charges From China To USA| SHIPPING GUIDE – Xiongda

Do you know how much it costs when you shipping from China to the US? Components of shipping charges from China to USA 1. Shipping fee The logistics and transportation fee chooses different products according to different transportation channels, and the corresponding price and time limit are also different, and the freight rate fluctuates every

Read More »
container shipping cost to USA
Shpping Guide
Mark

Container Shipping Cost To USA | FCL SHIPPING – Xiongda

On July 8, 2021, according to the Drewry World Container Index, the 40-foot container shipping cost to USA has risen to $9,631. You know, from 2011 to March 2020, the average container shipping cost to USA was less than $1,800, a 229% surge compared to the same period in 2020. The container shipping cost to

Read More »
Delivered Duty Paid shipping
Shpping Guide
Mark

What Does Delivered Duty Paid shipping to USA Mean? – Xiongda

DDP , Delivered Duty Paid shipping is a method of Delivered where the seller assumes all risks and costs of shipping the goods until they reach their destination. When shipping from China To USA, Delivered Duty Paid shipping is a general shipping method developed by the International Chamber of Commerce to help standardize shipping options

Read More »

Know More About Xiongda

freight logistics China

Freight Logistics China Shipping Agent-Xiongda

Xiongda is a professional shipping agent in China since 2006, and with the 16 years of development, Xiongda now has 6 branches in China.

As an entrepreneur in China, Xiognda provides hundreds of jobs to let more people have work. And also Xiognda will take some charity events to give back to the society.

shipping from China to US

Shipping Logistics China To USA-Industry News

Xiongda has been staying focus on shipping from China to USA about 16 years. We will share the latest news in the shipping industry.

The latest industry news cover air and sea freight from China to USA, and FBA freight to USA. We can also provide the one stop shipping solutions, contact us if you need.

china forwarding service

China Freight Forwarder- Latest Post About Shipping

Shipping from China is easy with freight logistics China Xiognda, because we have been doing our work for about 16 years! We will share anything about shipping from China to USA.

We have rich experience in air and sea shipping, as well as the FBA freight to USA. Feel free to contact us if you need a shipping solution.

Scroll to Top
Xiongda always care about your products, and will provide full services in the freight progress.