The abbreviation of the logistics term ddp shipping stands for delivery with payment of duty. Its meaning is related to that the importer receives the goods at a pre-agreed place. The cargo is delivered with customs clearance from duties and risks. The importer is in an advantageous position. He does not need to track transportation and customs clearance.
What Is DDP Shipping and How Does It Work?
According to the rules of international trade, ddp freight is used for cargo logistics by sea and air. In this case, the maximum responsibility will be assigned to the seller. Therefore, the choice of transport for the organization of delivery is carried out by the seller. The risks increase if the seller does not have enough knowledge about the requirements of delivery to a certain destination.
The contract must specify all the features of delivery. The shipment is considered completed only if the cargo is in the buyer’s warehouse at the agreed time. Any delays and incomplete unloading of the container are not allowed. Supplier must have all the accompanying documentation. An invoice, confirmation of payment of duties, certificates and licenses for products should be provided.
The buyer is obliged to notify the supplier of the date and exact time of delivery. If it is necessary to adjust the timing or change the place of goods receiving, the buyer must notify this in a timely manner.
An important aspect of cooperation under the terms of delivered duty paid is cargo insurance. INCOTERMS does not provide clear explanations on this issue, so the seller and the buyer must independently agree on the terms of insurance. They also need to decide who will bear these costs.
The final price is represented by the total cost of the goods themselves, costs of customs clearance, logisticsб all taxes and fees that were paid in the process. The price is determined at the time of signing the contract.
What Are the Benefits of DDP Shipping?
The advantage of ddp delivery is the fact that the buyer will receive the finished product for sale on the domestic market. Нe will not have to bear the costs associated with customs rates and fees. This type of delivery under the terms of Incoterms is considered the most profitable for the buyer. Because he is free from any expenses and is not responsible for the cargo until it arrives to the warehouse.
Hidden shipping costs significantly increase the initial cost of the goods. The absence of additional expenses increases the interest of a potential client.
- time saving – DDP incoterms allows you to speed up the shipping process;
- security of sales for the customer;
- increased efficiency.
For the customer, ddp delivery is the most convenient way to receive goods from foreign suppliers.
Optimized Checkout Experience
Order process optimization is impossible without effective management. Using the services of ARDI Express, you can be sure that the cargo will be under control at every stage of the process. Due to this, the seller’s risks will be minimized. Cooperation with Amazon allows to guarantee low tariffs and efficient delivery between different countries.
Improved Customer Relationships
Optimization of organizational processes helps to increase the loyalty of customers who are ready to use ddp delivery. It helps to maintain a positive reputation of the company. Customer relations are improved as duties, taxes and any applicable customs clearance fee on import are paid back to the supplier. Ddp shipping helps in reducing customer support issues and in increasing conversions by 30%.
It’s Too Easy Not to Use
Suppliers do not necessarily have to organize the delivery themselves. Choosing a reliable company will help to get rid of most of difficulties associated with international delivery. All tariffs and fees will be calculated for you. Trust the experts, they will help reduce the risks to a minimum.
Try DDP ASAP with ARDI Express
Thanks to the extensive experience, ARDI Express has helped many companies in USA to make themselves known on the world market. We provide customs assistance to our clients and guarantee the organization of logistics processes at a high level. Our cooperation will be a new step in the development of your business.
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