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What is DDP shipping and when should I use it?

Updated 2026-10-25 · Juhe Zhuang Rate Platform · ocean freight data from China
Quick answerDDP = seller pays freight, import clearance and duties; DAP/DDU = seller pays freight only, buyer clears and pays duties. Use DDP for small e-commerce shipments or buyers without an importer of record. Avoid DDP if the destination requires a local VAT number you do not have, or if valuation risk is unacceptable.

DDP versus DAP

DDP: seller is importer of record (or uses a proxy), pays duty and VAT.

DAP: buyer clears and pays; seller delivers to the named place.

Incoterms 2020 uses DAP; DDU is the older name.

Risks of DDP

Customs valuation is the seller’s responsibility — under-declaration is the seller’s liability.

Some jurisdictions require a local tax ID, making DDP impossible for foreign sellers.

Final-mile issues (loss, damage) fall on the seller.

ItemDDPDAP / DDU
Import clearancesellerbuyer
Duties & VATsellerbuyer
Deliverysellerseller
Main riskvaluation/complianceclearance delay

Frequently asked questions

Why is DDP so much more expensive?
It bundles clearance, duties, VAT and delivery — costs that are normally visible separately under CIF.
Can I under-declare to reduce duty?
No. It is a customs offence, with penalties, seizure risk and lasting compliance impact.
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Source: Juhe Zhuang rate platform (jhz56.com) market data and carrier documentation. Figures are reference ranges, not transaction prices; verify with your forwarder before booking.