What are your preferred shipping terms when importing from China? EXW, FOB, CIF, or DDP… With so many terms, DDP shipping from China allows buyers to complete the import process easily.
In this article, we will discuss how DDP shipping from China works. If you are running small import business, consider DDP shipping, it will save you a lot of time and effort.
What Is DDP Shipping from China?
The DDP shipping method means that the buyer’s location is where the goods are delivered. The seller then pays the import duties on behalf of the buyer, including the cost of transporting the goods from the point of entry to the location you want.
Under the policy of DDP shipping from China, the seller pays the transportation costs, export and import duties, and any other fees.
Here, the seller also arranges delivery services and clears their payment. Thus, they deliver the product directly to your doorstep or to the agreed destination without you having to do anything.
DDP shipping from China can be accomplished in two ways:
- DDP Freight – Which requires a freight forwarder to handle everything from A to Z, including customs clearance at both ends of transit.
- DDP Alibaba – This only requires sellers on Alibaba or other e-commerce platforms to provide all the necessary information (customs declarations) about their products and customers.
You may learn more about Incoterms for details below:
What are Incoterms? | The Complete Guide 2022
How Does DDP Shipping from China Work?
DDP stands for Delivered Duty Paid.
In this type of delivery agreement, the seller assumes all responsibilities, risks, and costs associated with the shipping of the product to the port of destination. Thus, it is an excellent option for buyers importing from China.
The process of DDP Shipping from China consists of the following steps:
- The buyer pays for the goods and selects DDP as the delivery contract.
- Both parties negotiate on the delivery location and other details of the agreement.
- The seller selects one or more carriers and places your shipment for subsequent delivery.
- The seller clears your goods in the exporting and importing countries.
- Your products go through the delivery process and eventually arrive at the chosen location.
- You can use all relevant documents to pick up your goods.
What Are the Benefits of DDP Shipping from China?
DDP shipping from China is very beneficial for companies that do not have import licenses. Without a license, the buyer will not be able to clear the import and pay the necessary duties and taxes. It also applies to Amazon shipments from China.
DDP shipping from China includes all shipping assistance from export and import clearance to local delivery at the buyer’s destination. Therefore, your DDP shipping from China to the US or any other country will be hassle-free.
On the other hand, DDP shipping from China allows you to calculate the total CIF cost in a second. In general, the total CIF cost is calculated by adding the product cost and the DDP shipping cost. All in all, DDP shipping from China is fast, easy, and hassle-free.
How Long Does DDP Shipping from China Take?
In our experience, it takes 5-6 days for DDP air to US and 18-22 days for sea; 6-7 days for DDP air to European countries, and 20-25 days for sea.
The time frame is not always correct. At the moment of COVID-19, any type of shipping faces certain delays. Therefore, please make sure to plan your shipping as early as possible.
The time for DDP shipping from China depends on various factors, such as:
- Shipment method – Different shipping methods take different amounts of time for DDP shipments from China.
- Type of goods – The type of goods you have determines how you ship.
- Goods weight – heavier and larger items are shipped by sea, smaller packages are shipped by courier service.
- Weather disasters, holidays, freight traffic, customs, and other aspects may change the time for DDP shipping from China.
You may learn more about Shipping Time from China for details below:
Shipping Time from China to US: How Long Does it Take?
What Methods for Shipping from China to UK? What are the Pros and Cons?
Is DDP Shipping from China Legal?
Yes, DDP shipping from China is legal and widely used in B2B transactions.
As long as you ask your supplier to write down the correct value on the customs declaration and get a valid invoice from them showing the value of all goods, the number of duties paid, etc.
Then, you can definitely choose DDP shipping and the goods will pass through customs without any problems.
However, some dishonest Chinese suppliers use it unethically. To avoid such scammers and to secure your business, you need to research and understand before proceeding further with the transaction.
You may learn more about Finding Reliable Suppliers for details below:
6 Tips for Finding Reliable Suppliers in China
What Are the Risks of DDP Shipping from China?
In China, your supplier will tell you that they can deliver to you via DDP shipping, but actually, they won’t clear your goods for customs!
We will list below the risks associated with DDP Shipping from China:
Risk 1. Incorrectly declared value
One of the bad practices of some Chinese suppliers is to falsify the declared value of the goods in order to avoid taxes. If Customs finds that the declared value is incorrect, the buyer will be liable for additional fees and taxes until the product is cleared.
On the other hand, when the goods clear customs and successfully arrive at their destination, you will not receive documentation showing the correct amount of tax paid for your goods. This will become a problem when you record it in your books for accounting purposes.
Risk 2. Incorrect HTS codes
Some Chinese suppliers will use incorrect HS codes to reduce the taxes and duties they have to pay.
For accounting purposes, the buyer needs the correct documentation and proof. If the code in your commercial invoice is incorrect, it cannot be used for your business tax return.
You may learn more about Import Duty from China for details below:
Import Duty from China Guide 2022: How to Calculate Them?
Risk 3. The seller assumes all risks
Here, the seller is solely responsible for all fees and other costs associated with shipping the product to its intended destination. This is a high-risk situation because they release the buyer from liability and assume all costs.
The seller is responsible for whatever happens during the shipping process. The seller has fulfilled his obligations when the goods are delivered to the named place and cleared for import.
Risk 4. Hidden/additional costs
DDP shipping means delivery duty-paid shipping and is a way in which the seller will pay the cost of VAT (Value Added Tax). If there is a VAT refund, the buyer will receive it, but the seller must bear the cost.
Therefore, the seller will usually increase the price of air or sea freight that will pay these taxes and duties. If the buyer agrees, the seller should cover other hidden costs during the transportation.
Risk 5. Buyer can’t control the shipping of the goods
When you choose DDP shipping from China, DDP shipping tracking is out of the buyer’s control. This means that you can only ask the seller about the status of the shipment, as they are the ones in full control of the goods’ whereabouts.
The seller has full control over what happens during customs inspections and shipping delays. The buyer cannot track the order directly, except through the seller, nor can they intervene if your package is delayed.
DDP Shipping from China FAQ
1. What is the difference between DDU and DDP?
DDU shipping stands for Delivery Duty Unpaid. Buyers must pay customs clearance fees and shipping costs to release the goods. They can also hire a customs broker.
DDP shipping stands for Delivered Duty Paid. The seller is responsible for customs duties and other additional costs to ship the goods to the destination country.
2. Which shipping method is best for DDP shipping from China?
You can use DDP shipping for air, sea, or rail freight. It is also multimodal transportation using DDP.
Regardless of the mode of transportation, the seller must clear import and export customs.
3. Does DDP shipping from China include customs clearance?
In a DDP agreement, the seller is responsible for customs clearance, including import duties or VAT.
When buyers purchase products under this agreement, they are not responsible for the costs associated with customs clearance.
4. Does DDP shipping from China provide door-to-door service?
Yes, DDP shipping from China offers door-to-door service. You will have your goods delivered to your desired location through a freight forwarder.
Once your goods arrive at the port, they will be transported to you via another inland route and then delivered to your doorstep.
DDP Shipping from China Conclusion
DDP shipping from China is the easiest and simplest way to ship your goods. It is very convenient for importers and can be shipped easily.
I hope this article shares the valuable information you need about DDP shipping. You can also leave your comments below with your own opinion.
We are a leading sourcing company in China, dedicated to helping our customer source quality products from China at the most competitive prices and providing reliable shipping services. If you would like to ship wholesale or direct from China, please feel free to contact us.
