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Interpretation of DDP terms

wallpapers News 2022-03-03
For many people who do foreign trade, the most important thing to do international trade is to understand all kinds of professional knowledge in mind, so that, at least in the emergence of relevant matters, will not be too panic. Although international profits are huge, most of the time, after all, we are doing foreign business, the transportation environment is changeable, the international trade market is also turbulent, any sudden external factors may have an impact on international trade. Among them, in international trade practice, international trade terms are an indispensable link to learning. There are different provisions in different international trade terms, and the interests and risk factors borne by the seller and the buyer may not be the same.
Definition of DDP 
Compared with such FOB and CIF we commonly used even familiar with international trade terms, including many international trade terms use frequency is low, while the international trade terms do not often use, but our study work is also important steps to follow, which day to one thousand, at least not because they don't understand by customer side by the nose. Although the international trade term we share with you today is not often used, we still see it frequently. It is DDP, and sometimes some importers will take the initiative to implement DDP terms.
Under the terms of DDP terms, trade both sides will jointly agreed on a delivery port, then the seller needed to cover the cost of goods right before the transfer, for example, chartering, customs clearance and customs clearance fee, and transportation cost, these are all need to bear the cost of the need to exporters, until in within the time limit stipulated in the contract and the provisions of the port, After the complete delivery, the risk of the goods can be transferred to the buyer.
Important responsibilities of buyer and seller
In DDP terms, the buyer and the seller have their respective rights. Among them, for the seller, the key lies in the goods, customs procedures, transport contract, delivery time, and relevant documents. If the seller exports the goods mainly under the restriction of DDP terms, it should first prepare the corresponding goods and negotiate with the importer about related transportation and delivery matters. In customs clearance or customs clearance, if the importer needs to provide relevant certificates, it also needs to communicate with the importer at this time. In addition, the goods and related documents should be delivered to the importer after completing the corresponding customs clearance procedures and paying the corresponding fees within the time limit stipulated in the contract at the agreed port. The corresponding transaction has been completed since then, and the risk basis of the goods has also been transferred to the buyer since the time of delivery.
Of course, under DDP terms, although the exporter seems to assume a lot of responsibilities and obligations, the buyer also needs to assume certain obligations and responsibilities, the most important of which is to complete the corresponding payment as required by the contract. When the seller goes through import customs clearance procedures, The importer is required to undertake all the relevant procedures and certificates to assist the seller in handling the export license or import license unconditionally.
There are risks
In fact, we can see from this DDP clause that the seller has to bear a lot of risks and pay a lot of sporadic fees, so in most cases, few sellers agree to use THE DDP clause. But why do we occasionally see international trade activities under DDP international trade terms? There are two main reasons for this: First, the merchant does not do much import business or is a novice in import trade operation, and is not familiar with many procedures and related procedures in import customs clearance, so DDP terms can help such novice importers save a lot of trouble. Secondly, as importers, their domestic import trade control may be relatively strict, so import trade needs to bear greater risks. Therefore, importers adopt DDP terms in order to transfer risks, hoping to transfer risks existing in the import of goods to exporters.
In international trade, general exporters for DDP terms are not very obnoxious, the main reason is still under this clause, the seller needs to take too much of a risk, but if have to accept the terms and conditions, as exporters of sellers should always think about more, as much as possible to maintain their own trade benefits.
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