DDP terms from China to USA is paid after payment, designated destination, and the seller must bear all risks and costs of delivering the goods to the designated destination, including any “taxes” that should be paid at the destination when customs formalities are required.
LDP shipping is similar to DDP, both at the seller’s own risk and expense, provide the import license, bear any import duties, including customs clearance fees, and any other duties or charges payable as the goods are imported and delivered to the buyer.
DDP terms from China to USA are more risky to the seller, and the seller’s risk will be relieved only when the goods are handed over to the buyer. If there are any problems during delivery, it is the seller’s responsibility. In order to avoid problems during delivery, sellers generally purchase corresponding insurance, which increases the cost.
Quote of DDP terms from China to USA
For DDP Incoterm, the buyer bears only the landed cost. Landed cost includes the total cost of the product plus shipping and taxes from origin to destination.
All in all, they are the cost of goods + shipping cost + insurance + customs + other expenses. This is the basis for the seller’s sales offer.
Why is Quote of DDP terms from China to USA so important?
DDP shipping from China to USA is important because using it correctly can guarantee buyers peace of mind. At the same time, if the DDP is done correctly and successfully, then a good relationship with the seller is established. When it is beneficial to both parties, it will encourage both parties to continue and grow the business.
International businesses can benefit even more from DDP because they don’t have to worry about all the issues that may arise in transit. Seller will be responsible for delivering the goods in accordance with its DDP terms of carriage.
Considerations for DDP terms from China to USA
1. Under the delivery conditions of DDP terms from China to USA, the seller delivered the goods at the designated destination after going through the export customs clearance procedures. In fact, the seller has transported the goods into the importer’s domestic market. If it is difficult for the seller to go through the import formalities directly, it can also ask the buyer for assistance. The DDP terms from China to USA should not be used if the seller cannot directly or indirectly obtain an import license or go through import formalities.
2. If the parties wish to exclude from the seller’s obligations certain costs to be paid for the import of the goods, such as value-added tax, they should add words to this effect, such as “delivery after duty payment, value-added tax not paid (insert specified destination). )” to make it clear.
3. The buyer is responsible for unloading the goods from the arriving means of transport at the designated destination, but the seller must ensure that the goods are available for unloading. When signing the contract of carriage, the seller should pay attention to the coordination of the place of delivery related to the contract of carriage and the contract of sale.
If the seller incurs unloading costs at the designated destination in accordance with the contract of carriage, the seller has no right to claim reimbursement from the buyer unless otherwise agreed by both parties.
4. Since the seller bears the risk before delivery at a specific delivery location, the buyer and the seller should specify the delivery address of the specified destination as clearly as possible, preferably to a specific point within the specified destination. If a specific delivery point is not agreed or cannot be determined, the seller may choose the delivery point most suitable for its purpose at the specified destination.
5. The seller has no obligation to the buyer to conclude an insurance contract, but since the risk of the entire transportation process must be borne by the seller, the seller usually avoids the risk of cargo transportation through insurance.
When should DDP terms from China to USA be used?
For small cargo
If your package is not very expensive, and within the allowed quantity or volume, and there is a duty exemption, you can trust your seller and try DDP. However, if you are buying from Alibaba, make sure you are dealing with a company that is trustworthy and well-ranked.
For high value items
You can choose DDP terms from China to USA when you order high value items and don’t want to clear them through customs. Your goods will be delivered to your door. The seller will cover all shipping and damage and you will be waiting at the designated destination.
Additionally, sellers know that shipping through partner couriers can be expensive, and more delays will cost them more. Therefore, they will only work with reliable freight forwarders with predictable routines or schedules.
FBA shipping to Amazon warehouse
Amazon sellers or other online entrepreneurs use DDP delivery services. When they order from a supplier, they ask them to ship to their warehouse. Sellers can arrange a combination service by air or ocean service + UPS shipping to the Amazon warehouse of their choice.