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How to Ship From China? DDP vs FOB vs EXW Shipping from China.

Jan 14, 2022
hello and welcome to the official merch sprout youtube channel today we are going to have a short sweet video on

ship

ping we will discuss the three most common

ship

ping terms ddp fob nx works so let's dive right in hello my name is george tucson i am one of the founders here at merch pro if you don't know us or if this is your first time visiting this channel hello and welcome merge sprout is all about sourcing the products you want and need from manufacturing epicenters like

china

and the wider area of ​​asia when we do this teaching people the art of sourcing auditing solid quality assurance and just as we are discussing in this video

shipping

and importing be sure to like and subscribe to our channel and stay up to date with all things sourcing manufacturing and China so today we are going to talk about

shipping

term there are so many different terms but in this video we will discuss the basics on the tlas that is three letters. acronym for those who don't know, don't worry anyway let's start with the easier but more expensive ddp now stands for delivery duty paid it's the simpler but more expensive way to ship components to you from your supplier typically only implemented when shipping items such as samples or smaller batches of parts, parts are shipped directly to you from the manufacturer, shipping cost is included, as are duties, usually insurance and VAT, including ddp, you have the commercial invoice of goods and documentation from supplier to shipping agent, agent will consolidate and control packing and export marking arrange export licenses and customs paperwork pre-arrange transportation and delivery cover landing charges they will cover the main expenses in cash and then they will provide you with a proof of delivery they will collect the import formalities ation and then they will arrange delivery to your name place of destination but you can see that it is very easy to use ddp t shipping terms or its components and its almost as simple as buying something on the internet and having it delivered right to your door. ddp shipping service has many positive aspects, as you can see, it is easy for you as a buyer from China. most of the organization is set up by someone else and if this is your first time importing something from

china

or abroad you may want to use it because it is fast and effective and incorporates many different shipping styles air and rail but there are a few disadvantages. for ddp the main one is cost gdp is expensive you are basically paying a company to do a considerable amount of administrative work on your behalf in arranging shipping, export, loading, import and delivery plus , suppose you are a VAT registered company, in that case you lose the opportunity to claim the VAT refund in the import process, which may mean that your products are not as competitive as those of your competitors because they can potentially undercut you the price, ok so the next shipping term we are discussing is by far the most common when we talk about shipping sourcing and purchasing in china is fob now that component production is complete your supplier should let you know and arrange for the inspection agents to come and look at the parts and get your approval, then ask the inspection agent to check the loading of the containers res and then release some of the funds you were holding on the basis of inspecting the good part, then the components will be shipped to the port of departure by the shipping company arranged by the supplier and the shipping company of the supplier will arrange the customs clearance and then you will discuss the shipping details with your freight forwarder, the components will be loaded onto a ship and then you will take possession of the component, which means that it then becomes your responsibility to get the components to their destination port of destination, we have the container on the ship, freight forwarders are informed of the landing date, the ship is activated and then you sat at home with your thumbs up waiting for your delivery now be sure to check out our other video on importing into your country and the nuances around VAT and import duties and how to calculate all these fees you can check it out here and it has a great cameo next to the toilet seat I had to refit before the wife dropped checking it out but the benefits of fob is that it's cheaper than ddp you can also claim back if you've checked in and you can have full granularity of the different steps in the process it's a term of shipping all suppliers if sourcing from alibaba will be able to complete and you don't need a trade agent to complete it now the downsides of fob is that it's not as simple as ddp you will need to have a few items set up to capitalize on all the supply chain benefits your ch like v80 and eroi numbers to claim VAT refund on import but if you have a decent enough shipping agent then its as easy as ddp now if you are finding this video informative and helpful please hit the like button and subscribe and ring the bell as it really helps us continue to make quality videos like this now the last shipping term to discuss emos in this video is exw which means x works now if you think of x works as the vendor makes the components and drops them at your door for you you are probably not wrong if you assume x works it means you need to complete almost every step of shipping either by yourself or agent on your behalf, which means you arrange shipment from supplier to port through customs with clearance arrange loading on ship and then arrange all import insurance and delivery by yourself now Don't worry, it's not as complicated as it sounds and it's not the end of the world, however, the biggest problem you may encounter here is that your supplier doesn't have the necessary export licenses, so you don't have the necessary export licenses. to get stock out of china i mean you may need agent or trading company to consolidate, buy and export the items for you, however there are some benefits to x fu It works if you can figure out the steps, the main one being that it opens up all the Chinese manufacturers to you, not just the companies with export licenses and the ones that in terms of fob alpha shipping can mean you can find considerable savings by approaching these types of supplier directly, importing components on x works is the same as on fob terms, which means you can have full control over the claim against v80 amount as long as your v80 is registered and has an eroi number.
how to ship from china ddp vs fob vs exw shipping from china
These are the most common shipping terms, ranging from the easiest to the most difficult to arrange, but of course, there are the terms in between these points and make sure you understand the shipping terms before you leave and get quotes from China and make sure to have all the costs in the shipping terms and make sure there is enough profit on your product when everything has been further calculated, be aware of the hidden costs that your shipping agencies can generate, make sure you have all the prices up front and understand before you push to go to production at your provider now I hope you enjoyed this video and some of the shipping terms are a little clearer now make sure you watch our video on vat because there is a lot of information in there and how to actually import your items as this good partner for this topic together, you will have a full understanding of shipping import duties and landing costs now if you enjoyed this video be sure to like and subscribe as it allows us to keep making videos like this. and be sure to stop by and visit us at merchbrow.com i have left a link below in the description please like and subscribe leave us a comment see you next time bye
how to ship from china ddp vs fob vs exw shipping from china

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