What is DDP shipping?
DDP, short for Delivered Duty Paid, is a delivery agreement. In this agreement, the seller delivers the goods that have not been unloaded on the delivery vehicle to the buyer after completing the import customs clearance at the designated destination. The seller must bear all the responsibilities, risks and costs of transporting the goods to the designated destination, including any “taxes” payable at the destination if customs formalities are required (including the responsibilities and risks of customs formalities, as well as handling charges, duties, taxes and other charges). This agreement includes payment of transportation expenses, import and export duties, insurance and any other expenses incurred during transportation to the agreed place in the buyer’s country.
What are the features of DDP shipping?
DDP shipping is a type of delivery in which the seller is responsible for all the risks and expenses of transporting the goods until their destination. DDP is primarily used in international shipping and is a general shipping method developed by the International Chamber of Commerce to help standardize shipping options around the world.
Many companies only use DDP for air or sea freight. Buyers benefit a lot from DDP because they take on less risk, liability and cost. While DDP is a good deal for the buyer, it can be a big burden for the seller, as it can quickly reduce profits if mishandled.
Due to the complexity of the rules related to international shipping and the fact that each country has its own set of rules and laws for customs procedures, DDP is best suited for high-value items (i.e. the average order value is over $30). Incoterms are internationally recognized transportation terms. In these Incoterms, DDP transport is a common practice for cross-border transport.
The reasons for choosing DDP
- To protect the buyer
DDP shipping can help buyers not to be cheated. Since the seller bears all the risks and costs of shipping the product, it is in the best interest of the customer to ensure that they receive the product they order. The time and cost associated with DDP transportation are a huge burden for fraudsters, so to some extent, DDP can protect the interests of buyers.
- Ensure the safe arrival of internationally traded goods at their destination
A lot can go wrong when exporters ship packages halfway around the world. Each country has its own laws on transportation, import duties, and transportation costs. So DDP makes sellers diligent and only sends packages on the best and safest routes.
- Ensure safe sea or air transportation
Depending on the type of product and where it is sold, safe air or sea transportation can be difficult. DDP is essentially a shipping agreement that ensures the seller doesn’t just take the money and run.
- International charges shall be borne by the seller
If buyers have to pay customs fees, there is a risk that the transaction will not proceed because they do not know the cost of those fees. With sellers and shippers paying international fees, DDP provides a smoother buying experience because buyers don’t have to worry about paying fees.
DDPFORWORLD-Professional DDP Shipping freight forwarder in China
DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. We do DDP shipping since 2015 by handling home décor, Pet products, batteries, power banks, DG cargo, general cargo and Amazon FBA forwarding service. We make your shipping easier and faster by Sea, Air, Express, Truck or Railway. If you have any questions or needs about DDP shipping freight forwarder, please feel free to contact us, we will serve you wholeheartedly.
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