Definition of LDP freight to USA
LDP (landed duty paid) is a kind of terms of trade, which is the same as the delivery price at the terminal where the seller pays the import duty.
Seller shall, at its own risk and expense, provide an import license and bear any import duties, including customs clearance fees, and any other duties or charges payable as a result of the goods being imported and delivered to Buyer.
Now many costume companies have reported that many customers recently requested to change the way of FOB delivery terms to China shipping costume LDP .Because customers want to lock in their own costs, reduce their own risks, and use the most convenient trading method to reach their own transactions,
At the same time, I also want to reduce my own costs, and I hope that exporters can provide low prices and deliver goods to the door. So U.S. customers are more interested in the shipper’s direct door-to-door delivery.
Advantages of LDP freight to USA
1. Control of cargo rights
Because the seller is responsible for the entire LDP freight to USA process from delivery to delivery, all rights to the goods are naturally in the hands of the seller, which helps to handle collection issues well.
2. Profit growth
The profit of LDP freight to USA exceeds that of FOB, and FOB is under great competition pressure. Costs are also relatively transparent. Because in LDP terminology, the seller is responsible for the entire transportation of the goods, helping the buyer reasonably avoid taxes and reduce costs. So the quotation will have a certain profit.
3. Increase the diversity of orders
After all, there are multiple trading methods and multiple trading possibilities.Main advantages for buyers: save time, save tax, save sales tax.
In addition to the above, the biggest advantage of my LDP is to help get orders.Because now LDP freight to USA has gradually become the trend of Sino-US trade, and the momentum is very strong.
To be honest, there are still options for customers to do LDP now. In the future, if most customers prefer LDP prices and you are unwilling to do it, many other suppliers will do it.
Everything has advantages and disadvantages. What are the risks of LDP freight to USA?
LDP freight to USA risks
1. Transportation risks exist in the entire freight logistics process. The modes of transportation include land, sea and air. Transportation insurance can be insured with commercial insurance, which can cover the whole journey or part of the road.
2. Customs clearance risk. LDP freight to USA suppliers are very important. You must choose a reliable and strong supplier, understand the establishment time, qualifications, professional competence and market reputation. It is best to conduct an on-site inspection of the office space.
There have been instances where suppliers have simply disappeared from the market, resulting in various additional costs for goods at the port of destination.
3. Payment Risk. As a supplier, all the preliminary work is to collect payment. It is recommended to use Sinosure. SINOSURE guarantees collection risk. Even if the buyer goes bankrupt, the buyer’s bank goes bankrupt, or even if there is political turmoil in the country, Sinosure can make compensation, including malicious rejection.
Differences between LDP freight to USA and DDP shipping term ?
DDP specifically means that the seller shall be responsible for transporting the goods from the place of shipment to the designated destination in the country of import stipulated in the contract, and the goods shall be actually delivered to the buyer before the delivery is completed.
The Seller shall bear all risks and costs of transporting the goods to the designated destination, including any “taxes and duties” payable at the destination when customs formalities are required
(including the responsibilities and risks of customs formalities, and the payment of commissions, duties, taxes and other charges).
LDP freight to USA is the equivalent of DDP, which is sometimes accessed by US clients when they trade. But it is not listed in INCOTERMS 2000, so few people use it. LDP is used more in countries with quota limit such as the US and the definition is different from (landed duty paid), which is to launch the landed duty paid instead.
Actual differences
1: LDP freight to USA is the price term of group C, which is the term of “shipment”. The insurance is only for the customer to buy on behalf of him. The liability risk is that the goods will be transferred to the buyer after crossing the ship’s rail.
DDP is the arrival contract, the goods to the customer hand over all risk costs borne by the seller.
2: LDP freight to USA is usually delivered at a port, so the term is usually followed by the port name. DDP can be delivered at any buyer’s location, such as ports, customer warehouses, etc. The risk of DDP is higher than that of LDP.
LDP freight to USA shipping process
1. Provide product packing list information, price, picture and consignee address (more than one consignee, and the warehouse can distribute the goods).
2. LDP suppliers 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 shipped, and notify the buyer after confirmation. Confirm address → appointment time → delivery.
5. After the goods are delivered, the buyer signs the POD (receipt order), and scans the mail to the exporter after signing.
6. Settle fees and complete this order.
