LDP, DDP What is the next?
Trade of the apparel (RMG), and other essential commodities shipping procedure was CNF (Clearing and forwarding) or CFI (Clearing forwarding with insurance covered)
After the end 80s or the beginning of the 90s terms changed to FOB (Freight on board or free on board). It is now LDP. LDP is an abbreviation for Landed Duty Paid (product + shipping + customs + risk + overhead = LDP).In a DDP arrangement, the seller assumes financial responsibilities for all transportation costs up until the point at which the consumer receives the product. Occasionally the seller will embed these charges within product prices or shipping fees for the buyer to partially cover, but the shipper will still be liable for any damages or losses before the delivery is received by the buyer. It is a shipping term that quotes the final price a buyer pays for goods being imported across borders. The landed price includes all the costs included in the supply line, from delivery and shipping to insurance, duty, and customs clearance. At the same other DDP Incoterms payment (or delivered duty paid) means the sender is responsible for paying the duties. LDP stands for landed duty paid and refers to the final price the sender is responsible for when selling their products cross-border. So, The importer typically pays the duty and then passes the cost on to the consumer.
LDP shipping includes crafting, handling, packing, insurance, transportation, and extra expenses such as exchange rates, purchasing tariffs,
Now, what will be the impact on small or medium exporters, and how they will invest this money in producing the goods and taking care of all carrying and insurance costs? DDP and LDP will help only the high-stakes players This way the competition will be at risk, monopoly will start, and many exporters or traders will move to another business or withdraw from the export markets. Billions and trillions of dollars of trade from country to country will be affected. most of the exporters especially clothing and commodities have come from lower GDP countries and most of these countries are very strict with Money laundering policies. and this both terms will fall in jeopardy or susceptible ness for the exporter and then what will be the way to Preservation or a better way for them?
The top 10 importers in 2023 as the USA emerged as the biggest importer country with total imports accounting for $3.17 trillion. Explore insights into the biggest importers in the world along with the top imports in 2023.Especially for international deliveries that are more complex than domestic freight, a strong understanding of delivery and shipping procedures is key to ensuring products are actually received, and you still make a profit. So, USA & European countries need to rethink its trade policies so that small and medium entrepreneurs will not be lost from the manufacturing market .it will be impacted in a longer time in the future.
KNN Linku
Writer, Columnist
knnlinku @ gmail.com
