DDP (delivery duty paid) shipping is a method of delivery in which the seller assumes all risks and expenses associated with shipping goods until they arrive at their destination. DDP is a typical shipping method designed by the International Chamber of Commerce to standardize shipping alternatives worldwide, and international shipments mainly utilize this method of delivery.
When delivering products by air or sea freight, many firms will only utilize DDP. DDP is advantageous to buyers since it reduces risk, responsibility, and expenses. Although DDP is a wonderful bargain for the buyer, it can be a significant burden for the seller if managed poorly since it can significantly erode revenues.
Many buyers and sellers dealing with international shippings have either less knowledge or no knowledge about the delivery methods, incoterms, shipping charges, etc. EVEREAST INT’L LOGISTICS is a China forwarder services company that has compiled a comprehensive guide about the DDP shipping method. Continue reading!
What does DDP (delivered duty paid) shipping entail?
DDP shipping is a delivery agreement between buyers and sellers that leaves the transportation risks and obligations on the seller until the customer receives the goods. Buyers are not responsible for real shipping costs with DDP, which encourages them to buy items without worrying about being duped or paying exorbitant taxes. China DDP shipping services To Manila protect the buyer while holding the sender liable until the client receives their merchandise.
What is the purpose of DDP?
- To safeguard the customers.
DDP shipments protect customers against being duped. Because the seller bears all of the risk and expense of delivering things, it is in their best interests to ensure that buyers receive precisely what they requested. Scammers are unlikely to use DDP delivery because of the time and money involved. Furthermore, it allows customers to test and determine if shipping from China is a viable option for starting a small business.
- To guarantee safe, hassle-free delivery.
DDP saves you time while assuring that your shipment arrives safely and on schedule. For first-time shippers, China customs can be a problematic issue, and if you want to know which route or freight service is best for your products, the seller will advise you to take DDP.
DDP import is the ideal option for eCommerce merchants, corporations, and consumers when done in good faith.
- For secure air or ocean freight delivery
Air and sea DDP delivery services are expensive. As a result, the seller will be vigilant in ensuring that the package sails because they have paid a significant sum for the service.
Similarly, if you choose a DDP logistics provider, you will no longer need to pay different companies to manage various components of your shipment’s import or export procedure. This is quite useful, especially for oversized shipments.
DDP shipping timeline
The total procedure in the delivery process of your items will be handled by the seller, DDP logistics provider, or DDP courier service. Let’s have a look at the shipment timeline:
Stage 1: Seller ships the products using courier service.
The seller will book or contact a partner courier to transport the item as soon as the seller and buyer agree on the DDP shipment. Courier services provide incentives and bulk discounts to customers who utilize their services regularly.
The seller is responsible for the buyer’s products. The first steps in this procedure are the loading and delivery of products to the port and the processing of export customs. Subsequently, the consignment will be loaded and transported to the export port or airport.
Stage 2: The seller is in charge of the cargo while en route.
This is the actual transportation of products from point A to point B. Shipping can be done by air or by water. With a dependable delivery partner, the seller assumes less risk and can be confident that the shipment will arrive on time. While the package is in the air or traveling across the oceans, the seller is still liable for inspection. They inspect the items and ensure they are delivered to the correct location. The seller will cover the cost if they are lost or destroyed.
Stage 3: VAT is on the seller
The seller will pay the necessary taxes and charges to the import’s customs clearance after the package has arrived at its destination. The seller is responsible for any delays caused by inadequate documents or expenses incurred during the clearance procedure.
Stage 4: The product responsibility is on the buyer after shipment
A destination location is agreed upon by both the seller and the customer. The seller will give evidence of delivery to the customer after the cargo has arrived and been cleared by customs. At this point, the buyer is responsible for the shipped product.
DDP shipping fees
DDP is a popular choice for sellers, but it has a hefty price tag. Calculate the costs you’ll have to pay and if you’ll make money from your sales to see if China DDP shipping services are suitable for your business.
All of these fees are the responsibility of the seller:
- Freight charges
- Custom duties
- Damage fees
- Shipping insurance
- Demurrage fee