What is LDP Shipping from China ?
LDP is a trade term, LDP=FOB price + destination country tax + freight + customs clearance miscellaneous fees. The consignor is responsible for all costs and corresponding responsibilities, and the consignee only needs to wait for the goods to be received at the warehouse.
The LDP Shipping from China highlights the overall price advantage of the supply chain. Different from the traditional DDP mentioned above, the core of the LDP is that the consignor needs to designate a third-party company to appear at the document consignee.
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 products can enter the market with a better price advantage.
LDP Shipping from China needs to be delivered to your door. The whole process is from the factory to the US warehouse, including cargo transportation, insurance and US customs clearance, tax payment, and delivery.
Why choose LDP Shipping from China ?
Profit maximization
Due to the increasingly fierce market competition in recent years, my country’s garment and textile export enterprises can only survive in the cracks and walk on the edge of zero profit.
LDP Shipping from China occupies a very important position in the current textile export trade.
Due to the flexible and changeable forms of reasonable tax avoidance, it is favored by many buyers and sellers of Chinese and American trading companies.
In this way of trade, cargo rights protection and customs clearance rate become the key to all transportation links.
Risk minimization
U.S. customers prefer shipper direct home delivery. Generally speaking, buyers of LDP Shipping from China larger 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.
As long as the buyer and the seller sign a good sales contract and control the payment process, the risk can also be reduced.
Precautions for LDP Shipping from China
Under such special terms, the following five points will be the attention points of the whole transportation:
Smooth customs clearance for imports at the port of destination: Since all the overall transportation matters are handled by the freight forwarder, the success of customs clearance at the port of destination depends entirely on: whether the import record of the third-party trader’s local customs is good; whether the freight forwarder’s operation record at the local customs is good;
Whether the customs clearance qualification of the local customs clearance bank is excellent;
Due to the strong seasonality of LDP Shipping from China , there are strict requirements for transportation time. Under normal circumstances, the whole container of goods can be delivered within 3 working days after arrival, while the LCL delivery will be delayed by 1-2 days.
In the actual operation process, the requirements for files are very high. The data should be as accurate as possible at the time of customs declaration.
AMS and ISF should not be changed. If it is LCL, the number of air freight containers is incorrect and must be changed. If there is little difference in the FCL data by sea, please do not change it. The bill of lading should be concise and clear at a glance.
If it is a branded product, the consignee must be prepared for authorization so that it can be provided to the customs for inspection in a timely manner to avoid high storage costs and demurrage fees caused by not issuing in time.
Under normal circumstances, the goods can be picked up within 5 working days after the goods arrive at the port if they are checked by the customs. If it’s an X-ray, generally NY will be slightly slower within 3 business days. All inspection fees are supported by documentation.
What are the advantages of LDP Shipping from China ?
LDP Shipping from China actually has big advantages for both buyers and sellers. First, for sellers:
1. Control of cargo rights
Because the seller is responsible for the entire LDP 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 exceeds that of FOB, and FOB is under great competition pressure. Costs are also relatively transparent. Because in LDP Shipping from China , 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. It can 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.
Detailed transportation process of LDP Shipping from China
The first paragraph: the process and operation of transportation in China
First of all, of course, the factory loads the goods, the goods are produced, the goods are loaded in the factory, and after all the goods are loaded, the driver drives it to the designated place for loading and container transportation;
Then it is to seal the box and enter the port. After all the goods are loaded, the box is sealed. After the box is sealed, it will naturally enter the port.
When entering the port, the customs must submit a series of formalities, such as bills of lading, etc., and then review the procedures for export declaration and some procedures for export declaration. After the declaration is successful, it is the export customs clearance.
The second paragraph is: the process and operation of shipping from China to USA.
During this process, the first step is to hoist the containerized cargo onto the ship and arrange a series of containerized cargo operations.
After the goods are loaded on the ship, the ship is arranged for transportation, so one of the next steps is to transport it by sea until it reaches the United States.
Third paragraph:US segment transportation process and operation
After the cargo arrives in the United States, it must be cleared at the U.S. customs.
Generally, pre-clearance is carried out, and a series of formalities are submitted. After the goods arrive, they can generally be released directly. After the release, it is about the operation of goods in the United States. .
The first is to transport the goods to the warehouse, pick up the cabinets and put them in the warehouse, and then unload the goods by relevant warehouse personnel, and then divide the goods into different categories.
After that, the delivery is based on the address, and the driver is arranged to deliver according to the information provided by others.
