Skip to main content

Delivered duty paid (DDP) shipping refers to a kind of delivery in which the seller assumes all risk and costs. For instance, Evereast Logistic offers DDP Shipping Services to Manila, and we associate this cost with delivering the goods up until they arrive at their destination.

Internationally accepted shipping terms are known as Incoterms. One of these incoterms is DDP shipping, which people frequently use for cross-border shipments.

DDP is a widely used shipping method that was created by the International Chamber of Commerce. It assists in standardizing shipping alternatives around the world, and people primarily use it for international shipping as well.

Delivered duty paid (DDP) shipping is a delivery arrangement in which the seller assumes all transportation-related risks and duties up to the buyer receiving the goods. Buyers are more willing to buy products with DDP because they are not responsible for the actual shipping costs.

This way, they don’t have to worry about falling for a scam or having to pay excessive taxes. DDP shipping is to safeguard the buyer and hold the sender accountable until the recipient receives their order.

Why Is DDP Used?

Here are the main reasons why merchants pick DDP over DDU shipping.

  1. To safeguard the customer

DDP shipments help the buyers in avoiding fraud. It’s in the seller’s best interest to ensure that customers really receive what they requested. Because they bear all of the risk and expense of shipping things. DDP shipment is time-consuming and expensive for fraudsters to even consider employing.

  1. To guarantee the safe international trade delivery to its intended location

When exporters send packages halfway across the world, a lot may go wrong. Every nation has its own regulations governing shipping costs, import taxes, and transportation. DDP encourages sellers to be careful to send packages only via the finest and safest routes.

  1. To guarantee secure shipping via air or sea freight

Safe air or sea delivery might be challenging, depending on the product and where the company sells it. DDP effectively functions as a shipping contract that prevents sellers from taking the money and running.

  1. Making vendors accountable for overseas charges

There is a danger that the sale won’t go through if the buyer has to pay customs taxes because they are unaware of the price. DDP makes shopping easier because the buyer doesn’t have to worry about paying foreign fees because merchants and shippers take care of it.

How Does It Work?

DDP follows a straightforward supply chain model. Until they deliver the products to the buyer, the seller keeps the majority of the liabilities.

There are four significant steps:

  1. Seller is liable if a carrier dumps off the package.

A dependable carrier will either pick up the package from the seller or deliver it to them. Because it lowers the total cost of delivery, reliable carriers encourage the sellers to use it.  

  1. Cargo delivery to its shipping location, seller responsibility.

They make shipments using any mode of transportation, such as boats, planes, and cars. The seller takes on less risk and can be sure of the shipment delivery when working with a reputable delivery partner.

  1. When the package gets to its destination, the seller is responsible for paying Value Added Tax (VAT).

The fact that the buyer is exempt from paying VAT is one advantage of DDP shipping. The seller is responsible for paying the shipment’s VAT expenses.

  1. The company delivers the package to the specified location; the buyer is now responsible.

The actual product is now the buyer’s responsibility once the shipment has been delivered. For D2C businesses, this is when you may hear from the client regarding any delivery-related difficulties.

Many businesses will only use DDP for air or sea freight shipments of goods. DDP offers significant benefits to buyers because it reduces their risk, responsibility, and expenditures. Even though DDP is a wonderful deal for the buyer, if mismanaged, it could be a significant burden for the seller.

DDP Shipping Services to Manila is the ideal option for high-priced items (i.e., those with an average order value of more than $30). It gets complicated with the requirements involved with international shipping and the fact that each destination has its own laws and regulations for customs formalities. 

 

Leave a Reply

INQUIRY NOW