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Why DDP terms for shipping from China? | Must-Read for Importers

Why DDP terms for shipping from China? | Must-Read for Importers

When shipping and importing from China, DDP is something that can be heard a lot. What actually are DDP terms for shipping from China and why should importers choose it? In this article, we will vastly discuss DDP terms for shipping from China and will include information on DDP terms for shipping from China for importers.

What are DDP terms for shipping?

Delivered Duty Paid (DDP) is a delivery agreement. In this agreement, the vendor assumes all responsibility, risks, and costs related to the carriage of the goods until the purchaser receives or transfers them to the destination port. This agreement includes payment of shipping costs, export and import duties, insurance, and any other expenses incurred during shipping to a location agreed upon in the country of the buyer.

Further Reading: Importing from China | What Are the Smartest Choices?

Agreements of DDP terms for shipping from China

DDP is a shipping agreement that gives the seller maximum responsibility. For example, DDP is suitable for courier services in which the full cost of the supply chain is under control, and the cost variance is minimal. In addition to shipping costs, the seller is obliged to arrange for clearance of imports, tax payments, and import duties. Until finalizing the deal, the buyer and seller will agree on all payment details and state the place of the destination name.

  • DDP terms for shipping from China imposes sole liability on the seller for the distribution of the products.
  • The seller shall manage all transport and associated costs. Which includes export clearance and customs paperwork required to reach the port of destination.
  • The threats to the vendor are large. These threats include VAT charges, bribery, and the cost of storage in case of any unexpected delays.

Why DDP terms for shipping?

Under DDP terms for shipping from China, neither the consumer nor the seller have to ensure the products. In this case, the regulations do not expressly address this insurance requirement. As part of the sales, the two parts should discuss and decide on this critical issue.

From above, although the customer might seem to have it simple and be able to take it easy, it may come at a cost. The explanation for this is that in the case of DDP terms for shipping, the buyer is completely dependent on the seller for everything. This dependence occurs from the door of origin to the door of the destination.

Further Reading: Everything about door to door shipping service from China | Details for importers

It means that the buyer could be at the mercy of the seller in terms of costs as certain costs could occur that the buyer could be better equipped to obtain than the seller. For instance, a buyer at the destination may have better rates and services than the seller who is sitting somewhere else. And may need to use an agent’s services to do all the work on their behalf.

Now that you know about DDP terms for shipping from China, you can use this service for your shipping. Ddpch also offers various types of delivery such as door to door, air freight, and sea freight. You can contact our support team.

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