由 caicai8478
In international trade, “Double Customs Clearance” and “DDP (Delivery Duty Paid)” are common logistics and trade terms, but there are significant differences in their definitions, division of responsibilities and practical procedures. The following analyzes the differences between the two from multiple dimensions to help understand their application scenarios in international trade:
I. Core Definitions and Scopes
- Double Customs Clearance
Definition:
Refers to the full customs clearance service of goods completing export customs clearance in the exporting country and import customs clearance in the importing country at the same time, usually provided by logistics companies or freight forwarders.
Note: “Double Customs Clearance” is not a standard trade term defined by the International Chamber of Commerce (ICC), but a popular term in the logistics industry. The specific service content must be agreed upon in the contract.
Core Content:
Only covers the operations of the customs clearance link, and does not involve the complete trade process such as cargo transportation, cost bearing, and risk transfer.
- DDP (Delivered Duty Paid)
Definition:
It is a term in the International Commercial Terms (Incoterms® 2020), which means that the seller delivers the goods to the buyer at the designated destination and bears all costs and risks of transporting the goods to the destination, including import customs clearance, payment of tariffs and other taxes.
Core content:
It is a complete trade term, covering the entire process from shipment to import delivery, and the seller has the heaviest responsibility.
- Comparison table of practical differences
Dimensions Double customs clearance DDP (delivery duty paid) Term nature Logistics service scope (non-standard trade term) Formal trade term (Incoterms® 2020 definition) Scope of responsibility Only responsible for export and import customs clearance operations Covering transportation, insurance, customs clearance, taxes, and delivery of the entire process Cost-Export customs clearance fee: usually borne by the seller
-Import customs clearance fee: may be borne by the buyer or seller (need to be agreed)-All costs: freight, insurance, import tariffs, value-added tax, customs clearance fees, etc. are all borne by the seller Risk transfer point Usually transferred after the goods are delivered to the logistics company or the buyer’s designated location Transferred when delivered to the buyer at the designated destination in the importing country Applicable scenarios-Applicable to buyers or sellers entrusting logistics companies to handle customs clearance
-Commonly used in cross-border e-commerce and bulk cargo transportation-Applicable to scenarios where the buyer does not have the ability to import customs clearance or hopes that the seller is responsible for the entire process
- Commonly used in full container trade, complex tariff national documents and compliant logistics companies to assist in preparing customs clearance documents. The responsible party may not be clear. The seller needs to provide complete customs clearance documents (such as commercial invoices, packing lists, certificates of origin, import licenses, etc.) and be responsible for compliance. Legal basis is based on the logistics contract agreement, lacks unified international rules, is subject to Incoterms® 2020, and has clear legal definitions.
III. Analysis of key practical details
- Division of responsibilities and risks
Double customs clearance:
If the contract only stipulates “double customs clearance” and does not specify other terms, the risks during transportation (such as cargo damage, delays) may be divided according to other trade terms (such as FOB, CIF).
Example: The seller delivers the goods on FOB terms and entrusts the logistics company to handle double customs clearance. At this time, the risk is transferred to the buyer after the goods cross the ship’s side, and the delay or increase in customs clearance costs shall be borne by the buyer.
DDP:
The seller shall bear all risks before the delivery of the goods, including damage during transportation, delays caused by customs inspections in the importing country, tariff fluctuations, etc.
Example: When goods are cleared for import, they are fined by the customs due to incorrect commodity classification, and the seller shall bear the cost.
- Cost calculation and control
Double customs clearance:
Customs clearance fees are usually fixed (such as per-ticket charges), but the importing country’s tariffs, value-added tax and other taxes must be paid by the buyer, and the seller does not bear the risk of price fluctuations.
DDP:
The seller needs to estimate and bear all taxes and fees of the importing country (such as VAT of the EU, tariffs of the United States, etc.), but due to the complexity of tariff policies of various countries (such as anti-dumping duties, quota taxes), costs may be out of control.
Suggestion: Under the DDP terms, the seller can ask the buyer to provide the importing country’s tariff rate in advance, or stipulate in the contract that “tax overruns shall be borne by the buyer” to reduce risks.
- Customs clearance operation entity
Double customs clearance:
The logistics company or freight forwarder is responsible for import and export customs clearance, and the seller or buyer does not need to participate directly, but needs to provide the documents required for customs clearance (such as packing list, invoice, customs declaration letter, etc.).
DDP:
The seller needs to handle import customs clearance by himself or entrust a local agent, and needs to be familiar with the customs regulations of the importing country (such as the EU needs to register an EORI number, and the United States needs to declare ISF), otherwise it may cause customs clearance delays.
IV. Applicable scenarios and selection suggestions
- Choose double customs clearance
The buyer is able to bear the import taxes and fees by himself, but lacks customs clearance operation experience, and entrusts the logistics company to handle the procedures.
The trade terms are FOB, CFR or CIF. The seller is only responsible for export customs clearance, and the import customs clearance is handled by the buyer’s entrusted logistics company.
For cross-border e-commerce small packages and bulk cargo transportation (such as LCL), logistics companies provide “double clearance and tax package” services (the fees may include taxes at this time, which needs to be clearly agreed).
- Choose DDP
The buyer is a novice buyer and has no import customs clearance qualifications or capabilities (such as individual buyers, small and medium-sized enterprises).
The customs clearance process in the importing country is complicated (such as some countries in Africa and the Middle East). In order to ensure the smooth delivery of the goods, the seller takes the initiative to assume full responsibility.
The contract stipulates that the seller must deliver the goods directly to the buyer’s warehouse without the buyer’s participation in any process.
V. Notes
Clarity of contract terms:
Dual customs clearance must specify in detail in the contract “who will bear the customs clearance fees” and “whether taxes are included” to avoid ambiguity.
DDP must indicate the specific location of the destination (such as “DDP New York Port”), otherwise disputes may arise due to unclear destinations.
Compliance and tax risks:
Under DDP, the seller must ensure that the import customs clearance documents are authentic and compliant to avoid the detention of goods due to false reporting or concealment.
If the importing country requires the buyer to be the taxpayer (such as the United States), DDP may have tax compliance issues and must be confirmed with the local customs in advance.
Insurance and risk transfer:
DDP recommends that the seller purchase full freight insurance (such as all risks) to cover the risks of transportation and customs clearance.
Double customs clearance requires the insurance liability party to be determined based on trade terms (such as FOB/CIF) to avoid insurance vacuums.
VI. Summary
Double customs clearance is a customs clearance service at the logistics level. It is highly flexible but the definition of responsibility depends on the contract agreement. It is suitable for scenarios where customs clearance needs to be outsourced;
DDP is a trade term at the legal level. The seller has comprehensive responsibilities but high risks. It is suitable for scenarios where the buyer needs “one-stop delivery”.
In actual business, it is recommended to choose a suitable model based on the resource capabilities of both parties, the complexity of the importing country’s policies and risk tolerance, and avoid potential disputes through detailed contract terms.