For exporters, what are the risks of DDP air freight? DDP air freight company believes that there are mainly the following:
DDP air freight company said that compared to FOB/C&F, DDP air freight is much more risky to the seller and should be said to be the most risky trade term. Under FOB or C&F, the risk passes to the buyer when the goods are loaded on board. But for DDP air freight, the seller's risk continues until it's in the hands of the customer. Any errors in the goods must be paid by the seller. Therefore, DDP air freight company recommends that the seller should apply for cargo transportation insurance, and if there is a problem, you can also find an insurance company.
DDP air freight company reminded that the seller ofDDP air freight must understand the policies of the importing country's customs or other government departments on this type of goods, whether there are any restrictions, what certification is required, and what is the import tariff. If you don’t understand it clearly in advance, it will be quite troublesome to solve it after the goods arrive at the destination port. For example, when food arrives in the United States, in addition to understanding the tariffs of the U.S. customs, you must also understand the FDA regulations.
Then there is the quotation. DDP air freight company said that there are many links involved in DDP air transportation, and some links may not be considered in the initial cost accounting, such as the inspection fee incurred by the customs at the destination port, or even the overdue storage fee, and others. Additional costs were incurred for the link. Therefore, when calculating the cost and quoting the customer, it is best to leave some space to include unexpected expenses.
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