Sellers’ responsibilities in DDP shipping arrangements are typically much higher than those associated with other shipping strategies. The seller is responsible for arranging transportation through the carriers of their choice, and will also be responsible for the cost of the carrier, customs clearance in the customer’s country, and obtaining approvals from the appropriate authorities. The seller may also be required to obtain a license to import goods, but will not be responsible for unloading the goods.
Sellers must also provide the goods, draw up a sales contract and documents, export the correct packaging, arrange for export clearance, satisfy export, import and customs requirements, and pay various transportation costs, including final landed goods.
Sellers must also request proof of landed goods and pay the cost of all inspections. They must also alert the buyer once the goods have been landed at the agreed location. With a DDP transaction, if goods are damaged or lost in transit, the seller will be responsible for the costs.
Regarding customs, it is not always possible for the person or company shipping the goods to clear the goods through customs in foreign countries. Custom requirements for DDP shipments often vary by country and, in some countries, import clearance is lengthy and complicated.
If a DDP shipment does not clear customs, this can lead to customs ignoring the fact that the shipment is on a DDP contract, which will delay the shipment. This could require the seller to use more expensive shipping methods.
How can Crossborderit help you?
Crossborderit (CBIT) is all about being transparent. Helping customers at every step of the international supply chain to deliver to their customers more efficiently and cost effectively. Crossborderit (CBIT) is here to help customers have a transparent, single-payment output. This makes customers of freight forwarders and trade brokers more loyal.
It’s all about creating a true DDP experience.
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