DDP is one of the most useful terms for importers buying from China, but it is also the most misunderstood. Here is what DDP shipping from China means, who pays the duties, and when it actually makes sense for your business.
What DDP Shipping from China Actually Means
DDP shipping from China means the seller pays for and handles everything up to delivery at your location, including Chinese export clearance, international freight, US import clearance, and all duties and taxes. DDP stands for Delivered Duty Paid, one of the 11 trade terms defined in Incoterms 2020 by the International Chamber of Commerce (ICC).
Quick definition: DDP (Delivered Duty Paid) is an Incoterms 2020 rule where the seller covers freight, duties, and clearance all the way to your door.
Under DDP the seller takes on the most work and you take on the least. The goods land at your door. No customs forms, no separate duty bill, no arranging the last leg of transport. Risk transfers to you only when the goods arrive at the named place, which can be a US port, your warehouse, or an Amazon center.
This is different from the terms many suppliers quote by default. Under FOB (Free On Board), the seller’s responsibility ends when the goods are loaded on the vessel at the Chinese port, and you take over from there. DDP removes that handoff and gives you a single, predictable cost from the factory to your warehouse.
Who Pays Duties & Handles Customs Under DDP
Under DDP, the seller is responsible for import clearance and for paying all duties, taxes, and fees in the destination country. That makes DDP the only Incoterm that pushes import formalities onto the seller.
The party that handles the clearance is the importer of record. In a real DDP deal the seller is the importer of record, or hires a US broker to file under the seller’s name. A foreign seller without a US presence can still serve as importer of record by obtaining a Customs Assigned Importer Number (CAIN) and naming a US resident agent. CBP does not enforce Incoterms directly. It looks at who filed the entry and whose name is on the paperwork, so the practical setup has to match the legal requirement.
One detail buyers should know: the seller bears the cost, but you may still be asked to provide product information, certificates, or local registrations that US Customs requires. Keep those documents ready before the vessel sails.
DDP vs DDU, FOB & DAP, What Changes for You
The practical difference between terms comes down to who pays duty and who files the entry. The table below shows where the cost and the work land under each common term.
| Term | Who pays import duty | Who files the entry | Your risk |
|---|---|---|---|
| DDP | Seller | Seller or seller’s broker | Lowest |
| DAP (old DDU) | Buyer | Buyer | Medium |
| FOB | Buyer | Buyer | Medium to high |
| DDU | Buyer | Buyer | Medium |
Under DDP, the seller does both. Under DAP (Delivered at Place), the seller delivers to your location but you handle import clearance and pay the duty. DAP replaced the older DDU term in Incoterms 2010, so if a supplier says DDU, read it the same way as DAP for cost purposes.
Compared with FOB, DDP shifts the entire customs and freight burden upstream to the seller. With FOB, you engage a forwarder at the Chinese port, pay ocean freight, arrange the ISF, and clear customs yourself. With DDP, your border involvement is minimal and the seller chooses the routing, so you trade some control for a fixed price.
If you import regulated products such as FDA or FCC items, DDP gets harder because many brokers will not act as importer of record for those categories.
When DDP Makes Sense for China Imports
DDP fits several buyer profiles. Amazon and Shopify sellers like it because the landed cost is baked into one quote, which makes pricing and cash flow easier and removes the risk of a surprise duty bill after the goods land.
Multi-supplier buyers use it to avoid separate customs entries for each factory. First-time importers benefit most, since DDP lets you receive goods without building a compliance stack on day one. You still need a US business entity and a delivery address, but the seller carries the border work.
DDP is less ideal when your margins are thin and you want to control every cost line, or when your product is agency-regulated. In those cases, FOB or DAP with your own broker often costs less and gives you more oversight. If you want one partner to run the clearance, our DDP shipping from China service manages export, freight, US import clearance, and duties under one arrangement.
Frequently asked questions
What does DDP shipping from China include?
A DDP quote from China typically includes export clearance, international freight, US import clearance, all import duties and taxes, and final delivery to your address. Cargo insurance and customs exam fees may or may not be included, so confirm the scope with your provider before booking.
Is DDP shipping legal and who is the importer of record?
DDP is a legal Incoterms 2020 term and is widely used. Under DDP, the seller is responsible for import clearance and usually acts as the importer of record, or appoints a US agent to file. CBP guidance requires the importer of record to be a proper entity, so the seller must meet US filing requirements.
Is DDP more expensive than FOB for China imports?
DDP is usually priced higher than FOB because the seller prepays freight, duties, and clearance and carries the risk. FOB can be cheaper if you have your own broker and strong freight rates, but it shifts all border work and duty payment to you. Compare total landed cost, not the headline term.