由 lltx1822 Cash Flow and Risk Transfer: Cost Impact Analysis of DDP/COD on Exporters and Importers
DDP and COD affect cash flow and risk 承担 differently for exporters and importers. For exporters, DDP requires advanced funds for transportation, insurance, and duties, with long capital occupation periods, demanding strong financial and financing capabilities. However, DDP helps exporters gain trade initiative and customer loyalty. Under COD, exporters receive payment upon delivery, with faster capital return, but bear the risk of buyer non-payment.
For importers, DDP eliminates the need to handle transportation and clearance, allowing focus on production and sales, but requires accepting quotes including duties, with relatively transparent but potentially higher costs. Under COD, importers handle clearance and bear duties and transportation costs, but pay only after inspecting goods, reducing capital occupation and procurement risks. Enterprises should choose terms based on financial status and risk tolerance to optimize cash flow and balance risks and returns.