What does air freight DDP mean?

Jun 03, 2024

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1, The meaning of air freight DDP
DDP, The full name is Delivered Duty Paid, which means delivery after tax payment. Under the terms of air freight DDP, the seller is responsible for transporting the goods to the designated destination and completing import customs clearance procedures before delivering the goods to the buyer at the destination, and paying all relevant taxes, duties, import fees, etc. This means that the seller bears all risks and costs from the shipment of the goods until delivery at the destination. For the buyer, they only need to receive the goods at the designated location and do not need to worry about any matters during transportation and customs clearance.
2, The characteristics of air freight DDP
The seller bears more responsibility: under DDP terms, the seller is not only responsible for the transportation of goods, but also for handling import customs clearance procedures and paying relevant taxes. This makes the seller bear more responsibility and risk in the transaction.
Buying convenience and profitability: For buyers, The DDP terminology provides great convenience. They don't need to worry about the transportation and customs clearance process of the goods, they just need to receive the goods at the designated location. This greatly simplifies the buyer's operational process and lowers the threshold for their participation in international trade.
Fast transportation speed: Air transportation itself has the characteristic of fast speed, and under the DDP term, the seller usually prioritizes the transportation of goods to ensure that they can arrive at the destination on time. This makes air freight under the DDP term often have faster delivery times.
High cost: Due to the seller's need to bear more responsibility and risk, The air freight cost under the DDP term is usually higher than that under other trade terms. This includes transportation costs, customs clearance fees, taxes, etc.
3, Operational Guidelines for Air Transport DDP
Signing a contract: Before the transaction begins, both the buyer and seller should sign a clear contract that specifies the terms and conditions under the DDP term. The contract should specify key information such as the name, quantity, price, delivery location, and delivery time of the goods.
The seller shall arrange transportation: The seller shall be responsible for arranging the transportation of the goods and selecting a reliable airline or freight forwarding company for cooperation. The seller shall ensure that the goods are properly stored and delivered in a timely manner during transportation.
The seller needs to handle import customs clearance procedures: After the goods arrive at the destination, the seller needs to handle import customs clearance procedures, including preparing relevant documents, communicating with customs, paying taxes, etc. The seller shall ensure the timely completion of customs clearance procedures so that the goods can be delivered smoothly to the buyer.
The seller shall pay all relevant fees related to air freight DDP, including transportation fees, customs clearance fees, taxes, etc. The seller shall ensure timely payment of fees to avoid affecting the delivery of goods and the smooth progress of transactions.
The buyer shall receive the goods at the designated location after the seller completes all transportation and customs clearance procedures. The buyer shall ensure that the quantity and quality of the goods comply with the contract provisions, and shall promptly pay the seller for the goods upon receipt.
 

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