DDP (Delivered Duty Paid) means the seller pays the import duty and clears customs — you get one all-in door-to-door price with no surprise bill at the border. It’s the calmest Incoterm for buyers who don’t want to run import paperwork.
What DDP actually covers (Incoterms 2020)
Under DDP the seller carries maximum obligation: international freight, export and import clearance, duties, and taxes to your door. Risk transfers to you only at delivery. Contrast that with FOB/CIF, where you (or your broker) handle the destination side.
The double-clear, tax-included flow
- Seller exports and books freight to destination.
- Forwarder clears export in China and import at destination, paying duty/VAT upfront.
- Duty and tax are baked into your quoted price — no separate assessment.
- Goods delivered to your address; you sign and done.
Hidden destination fees DDP removes (and FOB leaves you)
| Fee | Under DDP | Under FOB / CIF (you handle) |
|---|---|---|
| Import duty & VAT | Included in quote | You pay at border |
| Customs broker | Seller’s | You arrange & pay |
| Demurrage (container at port past free time) | Forwarder’s risk | Your cost if slow to pick up |
| Detention (late container return) | Forwarder’s risk | Your cost |
| Last-mile trucking | Included | You book separately |
Demurrage and detention are the silent budget-killers: miss the free-clock window at the port and daily fees add up fast. DDP puts that clock on the seller.
How to spot “fake DDP”
Common trap: A factory quotes “DDP” but the contract says FOB, or the price excludes duty “estimated at border.” If you’re asked to pay duty on arrival, it was never DDP. Always confirm the Incoterm in writing and that duty is prepaid, not estimated.
When DDP is the right call
- You’re not set up to file imports or don’t have a broker.
- You ship to Amazon FBA and want one predictable cost.
- Your product’s duty rate is high and you want it priced in upfront.
Before you commit, confirm your product is even allowed in — check the restricted-items and compliance rules first. And if you want the goods repacked and sent DDP to an FBA warehouse, our repacking + DDP flow handles both. For the cost baseline, compare real CIF vs DDP landed costs on our main guide.
The destination-port hidden-fee framework (what DDP removes, FOB leaves you)
Under DDP the seller carries these. Under FOB/CIF they land on you at the border. Know them by name so a quote can’t hide them:
| Fee | What triggers it | Under DDP | Under FOB (you) |
|---|---|---|---|
| ISF (10+2) | US import, file ~24h pre-departure | Seller files | You / your broker; late = up to $5,000 penalty |
| AMS | Manifest per house bill | Included | ~$25–50, you pay |
| CFS charge | LCL stuffing/stripping | Included | Per CBM at dest. terminal |
| THC (origin+dest) | Terminal load/discharge | Included | You pay destination leg |
| MPF (~0.3464%) + HMF (0.125%) | CBP processing on value | Seller prepays | You pay on customs value |
| Single Entry Bond | No continuous bond | Seller’s | You buy, scaled to value |
| Chassis Split / Pier Pass | US drayage / LA-LB congestion | Included | Port-dependent, you pay |
| Demurrage | Container at terminal past free time | Forwarder’s risk | Your cost if slow to pick up |
| Detention | Late container return | Forwarder’s risk | Your cost |
| Last-mile + appointment | Final delivery | Included | You book separately |
Fee names and mechanics below are standard US-import items. Amounts are typical reference ranges that vary by carrier, terminal, and year — confirm the current CBP schedule and your forwarder’s line items before booking. None of this is a live quote.
Demurrage vs detention are the silent budget-killers: free time is commonly only 4–5 days at US ports, then daily fees escalate. DDP puts that clock on the seller; FOB puts it on you.
Documentation & compliance: where the real fines live
- B/L accuracy. A wrong consignee or notify party can block release until an amendment (typically $50–150) is filed — and demurrage accrues while you wait. The B/L must match the commercial invoice.
- HTS / HS code. ISF and the entry both need the correct tariff code. A wrong HTS can trigger re-classification penalties, delays, or seizure of the goods.
- Customs value. Under-valuing to “save” duty is fraud with fines and seizure risk; over-valuing just wastes duty. Show the true transaction value.
- Importer of record. Must have a US EIN (or use a licensed broker/agent). A foreign buyer can’t file formally without one.
- Product compliance. FDA, FCC, CPSC, or other agency clearance may be required before release — confirm before you ship.
Edge cases: when DDP backfires
- Under-declaration by the seller. If a “DDP” provider low-balls the declared value to cut duty, you — as the ultimate consignee — can be liable when CBP audits. True DDP shows the real value.
- De minimis changes. Low-value China shipments no longer enjoy automatic Section 321 exemption in many cases; even small boxes may need a formal entry. Don’t assume “under $800 = no paperwork.”
- Restricted product. If the item isn’t allowed, DDP doesn’t save it — it gets seized. Check rules first via our compliance guide.
Template: ask the factory for a real DDP quote
Message to supplier:
“Hi [Supplier], I’d like a DDP quote to [address / port]. Please confirm in writing: (1) Incoterm = DDP, (2) import duty and VAT are prepaid and included — not estimated, (3) your US broker’s name, (4) who files the ISF and entry (your bond or mine), (5) any product-specific compliance (FDA/FCC/CPSC) you handle. If duty is paid on arrival instead, it is not DDP — please clarify. Thanks, [Your Name]”
Transparency note: The DDP flow, fee comparison, and fake-DDP warning are based on Incoterms 2020 and the author’s customs experience. An AI model assisted with outlining and polish. Duty rates and port free-time windows vary by product and port — verify against the current customs schedule before publishing.