Glossary
What is DDP (Delivered Duty Paid)?
DDP is an Incoterm where the seller takes full responsibility for freight, insurance, export and import customs, duty, taxes, and last-mile delivery to the buyer's named address. The buyer just signs for the box.
When DDP makes sense
- First-ever import with no forwarder, no broker, no contacts
- Samples or very small orders under $2,000
- You value zero operational hassle more than 30-50% margin
When DDP is dangerous
DDP sellers often undervalue the customs declaration to reduce duty (and pad their margin). Your country's customs can audit any import for up to 5 years and bill you for the difference plus penalties.
If you accept DDP, demand:
- A copy of the commercial invoice as filed with customs
- A copy of the customs entry (CBP Form 7501 in US)
- Proof the declared value matches what you paid
DDP price example
Quote: DDP NYC warehouse $5.50/unit, MOQ 5,000 units
What you pay: 5,000 × $5.50 = $27,500. Done.
What it should have cost FOB: ~$23,400. The seller pocketed ~$4,100 for handling logistics. 17.5% premium for convenience.
For samples or first imports that's reasonable. For recurring orders, switch to FOB or CIF.
Full comparison
See [FOB vs CIF vs DDP](/blog/fob-vs-cif-vs-ddp-which-incoterm-protects-new-importers/).
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