What is DDP?
DDP: “delivery after duty paid” means that the seller transports the goods to the place designated by the buyer after handling import customs clearance procedures at the designated destination If the goods have not been unloaded and delivered to the buyer, the Seller shall bear all the risks and expenses of transporting the goods to the designated destination, including any “taxes” payable at the destination when customs formalities need to be handled (including the responsibilities and risks of handling customs formalities, as well as paying handling fees, duties, taxes and other expenses). It can be seen that the seller bears great responsibilities under the DDP term.
Now let’s talk about what should be paid attention to when shipping DPP in the United States?
DDP delivery conditions notice 1:
Under the DDP delivery conditions, both parties agree that the exporter shall deliver the goods at the designated place after going through the export customs clearance procedures. This actually means that the exporter needs to ship the goods to the domestic market on the importer’s side. In this case, if the exporter has difficulty in handling the import formalities directly, he may also ask the buyer for assistance. If you do have difficulties, you should not use DDP terminology.
DDP delivery conditions note 2:
If the import and export parties are willing to exclude from the obligations of the exporter certain expenses that need to be paid in the process of importing the goods after negotiation. Then relevant words should be specified in the contract. For example, to exclude value-added tax, the words “delivery after tax payment, value-added tax unpaid” should be added to clarify the relevant terms.
DDP delivery conditions notice 3:
Under DDP delivery conditions, the importer needs to be responsible for unloading the goods from the means of transport at the designated destination, while the exporter needs to ensure that the goods can be unloaded. Therefore, when signing the transportation contract, the exporter should pay special attention to defining the above delivery place, because unless both parties agree, the unloading expenses paid by the exporter at the destination cannot be reimbursed to the buyer.
DDP delivery conditions notice 4:
In the workflow of DDP delivery conditions, although the exporter has no obligation to enter into an insurance contract with the importer, the exporter still chooses to buy some transportation insurance to avoid the risks in the transportation of goods because the risks in the whole transportation process need to be borne by the exporter.
DDP trade mode, namely “delivery after duty paid”, is applicable to all modes of transportation. It should be noted that necessary insurance should be taken out during DDP trade.
DDP trade mode note 1: insurance matters
As the transaction is concluded in accordance with DDP terms, the Seller shall bear great risks. In order to obtain timely economic compensation in case of damage or loss of goods, the Seller shall apply for cargo insurance. When selecting the type of insurance to be insured, DDP trade terms should also be the same as DDU terms, which should be flexibly determined according to the nature of the goods, mode of transportation and route of transportation.
DDP trade mode note 2: on the mode of transport
According to the interpretation of General Rules 2000, DDP terms of trade and DDU terms are applicable to various modes of transportation. However, when the place of delivery is on the ship or wharf at the port of destination, the terms des or DEQ shall not be used for DDP.
DDP trade mode note 3: other precautions
Under the DDP trade terms of delivery, the seller delivers the goods at the designated destination after going through the import customs clearance procedures, which in fact means that the seller has transported the goods into the domestic market of the importer. If the seller has difficulty in handling the import formalities directly, it may also ask the buyer for assistance.
If both parties agree that the buyer shall go through the import formalities of the goods and pay the customs duties, the DDU term shall be used. If both parties agree to exclude from the seller’s obligations certain expenses (such as VAT) that should be paid when the goods are imported, it shall be written as “delivered duty paid, VAT unpaid (… Named place of destination)”, that is, “delivered duty paid, VAT unpaid (… Designated destination)”.
Pay special attention to the above points when using DDP trade mode, so as to make your foreign trade activities more smooth.
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 China DDP shipping since 2015 by handling home décor, Pet products, battery, 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 China DDP shipping freight forwarder, please feel free to contact us, we will serve you wholeheartedly.
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