LDP freight from China to USA(LDP:Landed Duty Paid), like DDP, is that the seller will deliver the goods to the place designated by the buyer after paying the import tax. Any other duties or charges payable upon importation and delivery to Buyer.
Many people may think that LDP freight from China to USA is equivalent to DDP. This goes back to the origin of the emergence of LDP. The use of LDP trade is relatively small, mainly when it comes into contact with US importers, and clothing involves more requirements.
Since China’s clothing export quota is fixed so much every year, in the case of short supply, it is transited through a third country (such as Singapore), and then shipped to LA (Los Angeles) in the United States to escape quota restrictions. Of course, the specific operation is rather cumbersome. Not only can the product not have the main mark of MADE IN CHINA on it, but it also needs to have a solid diplomatic relationship.
Time of LDP freight from China to USA
Shipping from Shanghai to USA usually go to LOS ANGELES or LONG BEACH. It is then transported by rail to the mainland of the United States. The general shipping schedule is 15 days to arrive at the port, and if there is no backlog in the railway, it can reach the CHICAGO Chicago side in about a week. By analogy, the clipper from Shanghai can reach the West Coast of the United States in 15 days. Slow boat to see the route, ranging from 20-25 days.
LDP freight from China to USA fees
Includes ocean shipping or air freight, quota, allocation of customs duties (double customs clearance), fees and other miscellaneous charges. Generally, charges are all-inclusive prices, rather than separate tariffs.
Why do U.S. importers require LDP freight from China to USA in the apparel trade?
A simple description is that you need to remove the cost of clothing goods in addition to the cost of your own quotation, and increase the calculation of logistics costs. American importers believe that all costs after customs clearance and delivery to the United States must be included in the calculation, including the destination port tariff.
Due to further risk management, more than half of US importers are quoting LDP charges rather than FOB. The LDP clause states that it is the exporter’s responsibility to deliver the goods to the customer’s specific location by the specified termination period.
For exporters, FOB terms used to focus only on the timing and quality of the goods in the factory. For U.S. importers, LDP freight from China to USA can lock in costs, control the time and space of receipt, and prevent risks.
Another point is to increase profits. LDP freight from China to USA profit will be more than FOB, FOB competition is fierce. Costs are also more transparent. Because LDP is the seller who undertakes the entire delivery process of the goods, and at the same time assists the importer to avoid taxes and reduce costs. Therefore, there is a certain profit in the quotation. Third, it can increase the diversity of business, and ultimately increase the proportion of various sales through various trade methods.
Process of LDP freight from China to USA
1. Provide product packing list information, price, pictures and consignee address to the forwarder. (There can be more than one consignee, and the warehouse can distribute the goods).
2. LDP freight forwarders provide a variety of shipping schedules or flights to choose from, and arrange transportation and customs declaration after confirmation.
3. After the goods arrive, notify the exporter, and then declare, clear and pay taxes to the US customs.
4. After the goods are cleared through customs, notify the exporter to confirm whether it can be delivered. After confirmation, notify the buyer to confirm the address, appointment time, and delivery.
5. After the goods are delivered, the buyer signs the receipt and scans the email to the exporter after signing.
6. Expense settlement, this order is completed.
Notes on LDP freight from China to USA
1. The import at the destination port can be successfully cleared through customs
2. LDP freight from China to USA often has strict requirements on transportation time due to strong seasonality. 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. When the Chinese customs export declaration, the data should be as accurate as possible (pieces of hair), and AMS and ISF should try not to change them. If it is LCL, it must be changed if the number of air containers is wrong, and do not change if the difference between the data of the whole container by sea is not large. The bill of lading is concise and clear at a glance.
4. If the goods are branded goods, the consignee must be prepared for authorization in case the customs inspection can be provided in time, so as to avoid high storage fees and demurrage fees caused by untimely issuance.
5. 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.
We have prepared more posts about LDP, you can check below:
Take You To Know About LDP Shipping Terms
