What do LDP shipping terms of carriage mean?
It is a kind of terms of trade, which is the same as the delivery price at the terminal where the import tax is paid by the seller. The seller bears the risk and expense, provides the import license, and bears any import duties, including customs inspection fees, and the import of goods and delivery to the buyer.
And any other taxes or charges payable. The buyer does not bear any risk arising from the transaction, that is, the risk is borne by the seller.
In fact, LDP shipping terms and DDP are the same, but the names are different in different countries. Americans like to call it LDP and Europeans like to call it DDP.This is a cost-effective option when you shipping from China to the US.
LDP shipping terms represent the whole process of transportation and the customs declaration, customs clearance, tax payment, etc. encountered in it. Simply put, it is the whole process of transportation from the factory loading place to the place designated by the purchaser and all the links contained therein.
Purchasers do not need to provide any information, just wait for the goods to be transported at the location he arranged, simple and convenient.
What is the process of LDP shipping terms?
1. Provide product packing list information, price, picture and consignee address (there can be more than one consignee, and the warehouse can distribute the goods.
2. LDP shipping terms 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 delivered. After confirmation, notify the buyer and confirm the address → appointment time → delivery.
5. After the goods are delivered, the buyer signs for POD (receipt order), and scans the Email to the exporter after signing.
6. Expenses are settled, and this order is completed.
What is the difference between LDP shipping terms and DDP?
The English of DDP is “Delivered Duty Paid”, which means “delivery after duty payment (designated destination)”. Deliver the goods to the importer.
Under this trade term, the exporter needs to bear all the risks in the process of delivering the goods to the designated destination, and also needs to go through the customs clearance procedures at the destination port, and pay taxes, handling fees and other fees.
It can be said that under this trade term, the seller has the greatest responsibility. This term should still be used with caution if the seller cannot directly or indirectly obtain an import license.
LDP shipping terms is C group price, it is the term of “shipping”, and the insurance is also bought for the customer. The liability risk is that the goods are transferred to the buyer after passing the ship’s rail (here is the risk of shipping, the risk of obtaining an import license, etc. is still the responsibility of the seller. ).
DDP is an arrival contract, and all the risks and expenses of the goods handed over to the customer are borne by the seller.
LDP is generally delivered at the port, and the term is usually followed by the port name. While DDP can be delivered at any buyer’s location designated by ports, customer warehouses, etc. DDP is more risky than LDP.
In fact, to sum up, DDP is customs declaration in the exporting country + customs clearance in the importing country + delivery after tax payment, and the tax package usually refers to fuel.
Is LDP shipping terms clause shipping risky?
Shipping on LDP shipping terms has the following risks:
1.The risk of cargo rights: the cargo rights under the LDP clause are fully placed under the buyer in the United States, and trust needs more protection.
2.The risk of collection: This is the biggest risk. Under the LDP clause, payment is basically made after receiving the goods. Any delay in delivery, quality defects, and credit risks may cause collection failure or discount fines.
3. Logistics risk: Under the terms of LDP, the garment leaves the factory, and all the risks and responsibilities involved in the goods before the warehouse selected by the recipient are all borne by the seller; this covers the risk of damage to the goods, the risk of delay, and the risk of customs clearance.
But in fact, don’t worry too much about the risk of LDP shipping terms. As long as it is not contraband, there is generally no risk. The main thing is to negotiate the terms of collection with your customers. In fact, many customers generally like to use LDP for transactions.
They are too lazy to do transportation and customs clearance. Using LDP is equivalent to directly locking in his costs and saving his time. This is also the reason why Americans do things efficiently. one.
Your LDP shipping terms cost = ex-factory price + export transportation + customs declaration fee + sea freight + insurance + US customs clearance + tax + delivery fee.