How Do I Set Up a DDP Shipping Agreement When Buying AGVs from China

When importing AGV forklifts from China, choosing the right shipping terms is just as important as selecting the right equipment. For many overseas buyers, Delivered Duty Paid (DDP) offers the simplest purchasing experience by allowing the supplier to manage transportation, customs procedures and final delivery.

However, not every supplier defines DDP in the same way. Before signing a purchase agreement, buyers should clearly understand which responsibilities are included, which costs remain their responsibility and how the entire delivery process will be managed.

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What Does a Complete DDP Agreement Include?

A professional DDP service should cover the complete logistics chain from the Chinese factory to your warehouse.

ServiceNormally Included in DDP
Factory Pickup
Export Customs Clearance
Ocean Freight
Import Customs Clearance
Import Duties & Taxes
Final Inland Delivery
Marine Cargo InsuranceConfirm Separately

DDP vs FOB: Which Shipping Term Is Better?

The best shipping term depends on your importing experience and project size.

ComparisonDDPFOB
Customs ClearanceSupplierBuyer
Shipping CoordinationSupplierBuyer
Project Management ComplexityLowHigh
Best ForFirst-time importers and turnkey projectsExperienced importers

Is Cargo Insurance Included?

Many buyers assume DDP automatically includes marine cargo insurance. In reality, Incoterms do not require insurance under DDP. Buyers should confirm whether insurance is included, what risks are covered and how claims will be handled if damage occurs during transportation.

How Is Final Delivery Coordinated?

Delivering AGVs is more complex than delivering standard industrial equipment. Before shipment, suppliers should verify unloading conditions, dock dimensions, forklift or crane availability, truck access restrictions and preferred delivery schedules to ensure smooth installation planning.

Questions to Ask Before Signing a DDP Contract

  • Does the quotation include all customs duties and import taxes?

  • Is marine cargo insurance included?

  • Who is responsible if customs inspection delays delivery?

  • Will the supplier arrange final trucking to my warehouse?

  • What documents will be provided for customs compliance?

  • Are unloading services included?

  • What happens if shipping schedules change?

Industry Perspective

From my experience with international warehouse automation projects, logistics often creates more project delays than the AGV equipment itself. A well-structured DDP agreement reduces communication gaps, minimizes unexpected costs and allows buyers to focus on commissioning rather than coordinating freight forwarders and customs brokers.

For companies purchasing AGVs from China for the first time, especially multi-vehicle or turnkey automation projects, DDP is generally the lower-risk option. When evaluating suppliers, don't compare only equipment prices—also evaluate their international logistics capability, customs expertise and project delivery experience. Those factors often have a greater impact on project success than a small difference in purchase price.

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