In international trade ocean shipping, choosing the DDP (Delivered Duty Paid) term means that the seller undertakes significant responsibilities, having to escort the goods all the way to the buyer’s designated destination and complete a series of processes such as customs clearance and tax payment. Freight forwarders, as professional logistics service providers, play a crucial role in this process. Efficient and comprehensive communication with freight forwarders is the key to ensuring the smooth progress of sea freight DDP. Here are the key pieces of information you need to focus on informing the freight forwarder:

I. Details of the Pick-up City and Destination Port

Firstly, clearly inform the freight forwarder of the name of the pick-up city and the name or code of the destination port. This seemingly simple step is actually the foundation of the entire transportation plan. Different freight forwarder companies have varying service network layouts. The pick-up city information you provide allows the freight forwarder to quickly determine whether they have branches or partners locally, so as to smoothly arrange pick-up matters.

Similarly, the accurate information of the destination port determines whether the freight forwarder can complete subsequent transportation, customs clearance, and delivery with its own resources or through agents. For example, some freight forwarders have mature operation teams in major ports in Europe and the United States, but their service coverage for some niche ports in Africa and South America may be limited.

If you plan to pick up goods from Guangzhou and transport them to Lagos Port, Nigeria, after learning this, the freight forwarder can immediately assess its own operational capabilities and plan transshipment and intermodal transportation schemes in advance to avoid delays or additional costs due to limited service scope later.

II. Detailed Information of the Goods

The characteristics of the goods themselves are one of the core elements affecting transportation arrangements. You need to provide the freight forwarder with detailed cargo information:

1. Description: An accurate description of the goods is of utmost importance as it is directly related to customs classification and supervision conditions. For example, although both “solid wood furniture” and “wood-based panel furniture” fall under the category of furniture, their customs codes and inspection and quarantine requirements are completely different. The former may involve special regulations such as wood quarantine and endangered species protection, while the latter is relatively simple.
2. HS Code: The HS code is like the “ID card” of the goods. Each code corresponds to specific tariff rates and regulatory document requirements. Based on this code, the freight forwarder can accurately estimate the customs clearance difficulty and cost and formulate a reasonable logistics quotation for you.
3. Number of Pieces, Weight, and Dimensions: These data determine the required transportation space and carrying tools. If the goods are 500 cartons, with a total weight of 10 tons and a total volume of 30 cubic meters, the freight forwarder can initially judge whether to book a 20-foot or 40-foot container, or consider the feasibility of LCL (Less than Container Load). At the same time, for overweight and oversized goods, special loading and unloading equipment and transportation routes need to be planned in advance to ensure the smooth progress of terminal and road transportation.
4. Packaging: Inform the freight forwarder of the packaging form of the goods, such as cartons, wooden boxes, pallets, etc., as well as the firmness of the packaging. Fragile items packed in cartons need to be handled with care during loading and unloading, and air-cushioned vehicles may be required for transportation; for overweight goods packed in wooden boxes, the freight forwarder needs to arrange for heavy equipment such as forklifts to assist in the operation and reserve enough space for easy handling. In addition, attach clear photos of the goods to let the freight forwarder intuitively understand the form of the goods and further improve the transportation plan.

III. Requirements for Customs Declaration and Clearance

The customs declaration and clearance processes are the key and difficult points in DDP transportation. It is essential to clearly explain the relevant requirements to the freight forwarder:

1. Qualification Issues: Clearly define whether the seller and the buyer respectively hold the necessary export and import qualifications. If the seller has complete export qualifications, usually priority is given to using the seller’s name for customs declaration to facilitate subsequent export tax rebate operations; if not, the feasibility of third-party customs clearance with purchased documents needs to be explored. Similarly, the buyer’s customs clearance qualifications determine whether it can carry out normal customs clearance under its own name; otherwise, customs clearance with purchased documents may be the way out. Different methods involve different processes, costs, and liability risks.
2. Choice of Customs Declaration and Clearance Entities: The seller needs to combine the actual trade situation and financial planning to decide whether to use its own name for customs declaration to protect tax rebate rights or adopt the flexible method of customs clearance with purchased documents to simplify the process. On the clearance side, using the buyer’s name for customs clearance helps establish trade continuity and credit records, but when there are qualification issues, customs clearance with purchased documents can solve the urgent problem. Based on your choice, the freight forwarder will allocate professional customs brokers and prepare corresponding documents to ensure smooth customs clearance at both ends of import and export.
3. Pick-up and Delivery Requirements: Emphasize whether you require the freight forwarder to provide door-to-door pick-up and delivery services. Although DDP includes the responsibility of door-to-door delivery, due to factors such as warehouse location and cost considerations, some sellers may arrange to deliver the goods to the freight forwarder’s warehouse by themselves; and the delivery at the destination port directly affects the buyer’s experience. The freight forwarder needs to plan the optimal delivery route according to the delivery address and match suitable vehicles to ensure that the goods are delivered on time and in good condition.

IV. Information on the Value of the Goods

The value of the goods is not only a key indicator in commercial transactions but also closely linked to customs duties:

1. Tax Association: When declaring for customs clearance, the value of the goods is the basis for calculating taxes. Truthfully declaring the value of the goods can ensure compliance in customs clearance, but it also means paying sufficient taxes according to the corresponding tax rates. For high-value goods, such as high-end electronic products and luxury goods, the tax cost cannot be ignored.
2. DDP Service Option: If the freight forwarder provides DDP service (including customs clearance with fixed tax fees), the seller can choose a package with fixed tax-inclusive customs clearance fees, simplifying cost accounting and transferring the customs clearance risk to the freight forwarder; however, under this model, the freight forwarder may estimate the tax based on the value range of the goods, and there may be potential disputes later if the actual value of the goods fluctuates greatly. If you do not choose the DDP service, then the principle of actual declaration and settlement for customs clearance will be followed, and the taxes will be settled immediately according to the value of the goods as determined by the customs and the tax rate. Although the seller holds the initiative in customs clearance, it needs to closely monitor exchange rate and tax rate changes to prevent cost overruns.
3. Export Tax Rebate Consideration: If the seller plans to apply for export tax rebates, it must use its own company name for customs declaration and retain a complete chain of procurement invoices, transportation documents, etc. The freight forwarder must strictly follow the formal process during the customs declaration stage to ensure that the documents match and are consistent, laying a solid foundation for the tax rebate application.

V. Shipment Time

The shipment time is the “baton” of the sea freight DDP transportation plan:

1. Matching Ship Schedules: The freight forwarder will work backward based on the shipment time to query suitable ship schedules. Different shipping companies and shipping routes have fixed but varying intervals between sailings. For example, there are 2 – 3 weekly sailings from Shanghai to major European ports. If the shipment time is close to the weekend, you may miss the fast vessel of the current week and have to choose the next week’s sailing, resulting in an extended delivery period.
2. Dealing with Fluctuations in Ocean Freight: The shipping market is constantly changing, and ocean freight is affected by factors such as supply and demand, oil prices, and seasons, resulting in frequent fluctuations. By locking in the shipment time in advance, the freight forwarder can quote according to the market conditions at that time and book shipping space, avoiding increased costs due to a sudden surge in freight rates when the shipment is approaching; conversely, if there is ample time, the freight forwarder can also monitor the freight rate trends and choose the right time to book shipping space to save freight costs for you.
3. Coordination of Related Links: Once the shipment time is determined, the pre-shipment processes such as pick-up, customs declaration, and packing will be arranged in sequence. The freight forwarder will reasonably arrange vehicles to arrive at the pick-up city in advance, customs brokers will declare on time, and dock workers will load the containers onto the ship as scheduled, ensuring that the goods set sail for the destination port on time and start the subsequent customs clearance and delivery processes.

In conclusion, in sea freight DDP business, comprehensive and detailed communication with freight forwarders regarding the above key information is the core element in building a smooth logistics chain and achieving successful trade delivery. Sellers should never cause obstacles and risks to goods transportation, customs clearance, and even the entire trade project due to information omission or poor communication. In the wave of global trade, only by precisely coordinating with freight forwarders can the goods sail smoothly and reach the commercial destination.