What is LDP shipping to USA ？
Do you know about LDP shipping of textiles and apparel for export to the US? LDP is an acronym for “landed duty paid”.
LDP/DDP=FOB price + destination country tax + shipping fee + customs clearance fee. The consignor shall bear all costs and corresponding responsibilities, and the consignee only needs to wait for the goods to be put into storage.
All need home delivery. The whole process is from the factory to the US warehouse, including cargo transportation, insurance and US customs clearance, tax payment, and delivery.
LDP shipping by sea is equivalent to U.S. DDP ocean freight, and these two terms are often encountered when dealing with U.S. customers.
Officially, DDP needs to designate a customs clearance company at the port of destination for customs clearance, while LDP shipping does not. Americans are often confused. What they are saying is that they expect the supplier to go through the whole process. DDP is commonly used internationally, but Americans are more often referred to as LDP shipping .
Why use LDP shipping to USA?
A number of clothing companies have reported that many American customers have recently requested to change the FOB transportation terms to LDP shipping , because American customers want to fix costs, reduce risks, and conduct trade transactions in the most convenient way.
They even want to reduce their own costs, hoping that exporters can supply them at low prices and deliver them to their doorsteps.
Everyone in a business wants to maximize profit and minimize risk. As a result, US customers prefer shipper direct home delivery. Generally speaking, buyers who want to do LDP shipping place 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.
Cargo rights protection
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. The trade form of LDP shipping 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.
Save logistics costs
It is understood that most of the foreign compradors or purchasers established in China will choose DDP/LDP trade terms for purchase because the cost is controllable.
The gross profit margin of the apparel textile industry is between 5% and 10%. Due to the low gross profit, the price of logistics freight is more important when exporting to the United States, saving logistics costs and increasing the gross profit of apparel textiles.
That said, most U.S. customers now expect suppliers to transact this way. Current market feedback: Now customers usually ask suppliers to quote FOB and LDP shipping prices, so that they can choose according to price and advantages.
What are the advantages of LDP shipping ?
1. The improvement highlights the overall price advantage of the supply chain. Different from the traditional DDP mentioned above, the core of LDP is that the consignor needs to designate a third-party company to appear in the consignee of the document, with textiles as an example.
And an experienced third-party the company can declare the goods at a reasonable declared price within the price limit, so that the products can enter the market with a better price advantage.
2. Increase the timeliness 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, in order to save intermediate logistics costs, traders are usually trapped and unable to Stable sailing schedule.
LDP 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 shipping 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.