DDP shipping: Delivered Duty Paid! For so many Amazon sellers who import products from China, it sounds like a dream come true! Isn’t it good that you can pay a slightly higher price for the product and deliver it to you with all the Taxes and Tariffs paid? It’s perfect! Still is…… Is it?
What is DDP Shipping from China?
In a Duty Paid Delivery – DDP shipping terms, the seller delivers the goods to a place designated by the buyer’s country and pays import duties, including inland transportation from the point of entry to the buyer’s location.
I’m afraid when it comes to such offers. We always go back to the old truth that if it looks too good to be true? Suppose you want to use Alibaba to import goods from China for sale on Amazon, eBay, or elsewhere. You should read this article very carefully because you are likely to be breaking the law and may face serious problems due to Tax evasion.
Does that sound scary? I agree. Let’s look for all about DDP Incoterms and how you use it and can’t use it in your import business.
Who is The Importer of Record on a DDP Shipment?
In DDP freight, the importer is recorded as the foreign shipper of the goods. For US example, Foreign shippers must obtain foreign entity customs bonds from US customs brokers through freight forwarders or surety companies (single or annual/continuous).
As all DDP freight brokers are independent and each charge a different fee structure, the DDP pricing differs for every shipping agent. DDP shipments are a little more expensive upfront because couriers will process the payment to customs on your behalf, but for an additional fee.
As I’ve already said, the DDP shipping representative “paid taxes,” which simply means that the seller bears all the goods related to transportation costs from their home to your home, including:
- The cost of the product
- Export duties/fees
- Import duties/fees/VAT/VAT
- Shipping to the specified address
That sounds good, doesn’t it? Yes, it is! This is a convenient way to import goods from abroad without worrying about any problems usually associated with imports from China.
In fact, widely using DDP to ship from China is begins at Amazon.
“Amazon will not be responsible for or charge any duties, taxes, or shipping costs associated with FBA inventory. All shipments are required to use Delivered Duty Paid (DDP), or sometimes referred to as “Free Domicile,” shipping terms. Any shipment to an Amazon fulfillment center The goods for which fees are charged, including any duties, taxes or freight, will be rejected without further concessions.”
With more and more Amazon sellers, many shipping companies had launched low-priced DDP shipping from China services.
Another huge advantage is that you can eliminate all guesses about the CIF cost of your purchase. The price you pay the supplier is the final price, including the cost of shipping goods in China. This makes profit and loss calculations very easy, especially for Amazon FBA sellers who must consider seller fees and FBA fees to calculate their profit correctly.