What is DDP shipping and when should I use it?
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.
| Item | DDP | DAP / DDU |
|---|---|---|
| Import clearance | seller | buyer |
| Duties & VAT | seller | buyer |
| Delivery | seller | seller |
| Main risk | valuation/compliance | clearance 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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Related
qa/fob vs cif
qa/destination charges explained
Rates from China to all countries
Weekly China export freight index
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.