What Is DDP Shipping from China?
DDP (Delivered Duty Paid) is the most seller-responsible Incoterm. The seller or forwarder pays for China export customs clearance, international freight (sea/air/express), insurance, import duty, import VAT/tax, and last-mile delivery to the buyer's named place. The buyer's only job is to receive the goods. DDP is popular with small importers, Amazon FBA sellers, and anyone who wants a single all-in landed price without dealing with customs brokers or duty invoices. It contrasts with FOB (buyer pays freight & duty) and DAP (delivered to door but buyer pays duty/tax on arrival).
DDP vs DAP vs FOB vs CIF: Who Pays What?
| Cost / Responsibility | FOB | CIF | DAP | DDP |
|---|---|---|---|---|
| China export clearance | Seller | Seller | Seller | Seller / Forwarder |
| International freight | Buyer | Seller | Seller | Forwarder |
| Insurance | Buyer | Seller | Seller | Forwarder |
| Import duty | Buyer | Buyer | Buyer (on arrival) | Forwarder |
| Import VAT / tax | Buyer | Buyer | Buyer (on arrival) | Forwarder |
| Last-mile delivery | Buyer | Buyer | Seller | Forwarder |
| Risk transfers at | China port (on board) | China port (on board) | Destination (before duty) | Buyer's door |
Bottom line: FOB gives you the most control and lowest cost but you handle freight, duty and delivery. CIF shifts freight to the supplier (often with a markup). DAP delivers to your door but you pay duty/VAT on arrival. DDP is the only term where the forwarder handles everything including duty and VAT. For a full comparison, see FOB vs EXW vs DDP.
What DDP Includes β Cost Components
When a forwarder quotes DDP, the per-kg or per-CBM price bundles four cost blocks:
| Component | Typical Share | Notes |
|---|---|---|
| International freight (sea/air/express) | 40 β 60% | LCL/FCL/air/express base rate + fuel |
| Import duty | 5 β 25% | By HS code + country (MFN, Section 301, anti-dumping) |
| Import VAT / sales tax | 10 β 25% | EU 19-27% VAT, US no federal VAT (state sales tax), UK 20% |
| Last-mile + customs clearance | 10 β 20% | Destination THC, broker fee, truck to door |
Because duty and VAT are bundled, DDP quotes are sensitive to the HS code. A 5% vs 20% duty rate on the same cargo changes the DDP price by 15% of the goods value. This is why some forwarders quote low using a favorable HS code β verify it matches your product to avoid customs seizure or a surprise top-up.
How Forwarders Calculate DDP
A DDP quote is built from four inputs:
- HS code β determines duty rate and any restrictions (anti-dumping, Section 301, quotas). The forwarder must declare it correctly.
- Destination country β sets the duty rate, VAT rate, and de minimis threshold (e.g., US $800, EU β¬150).
- Weight & volume β determines freight cost (per kg for air/express, per CBM for sea LCL, per container for FCL).
- Incoterm & service level β DDP vs DAP, door-to-door vs port-to-port, standard vs expedited.
The forwarder then adds a margin (5β15%) and quotes a single all-in price. For sea DDP, expect the quote in $/kg or $/CBM; for air/express DDP, in $/kg. Always ask for the HS code, duty rate, and whether the import is filed under your EORI or theirs.
Worked Example: 500 kg Sea DDP from Shenzhen to Germany
Ship 500 kg (3 CBM) of home goods (HS code 9403, duty 0%) from Shenzhen to a warehouse near Hamburg, Germany, under DDP.
| Line Item | Amount |
|---|---|
| Sea LCL freight (3 CBM Γ $65) | $195 |
| Origin THC + docs | $120 |
| Destination THC + customs broker | $180 |
| Import duty (0% of $8,000 goods value) | $0 |
| Import VAT (19% of $8,000 goods + $495 freight/duty) | $1,614 |
| Last-mile trucking (Hamburg β warehouse) | $220 |
| Forwarder margin (10%) | $221 |
| Total DDP landed | $2,430 |
| Effective per-kg DDP | $4.86/kg |
The VAT line dominates β Germany's 19% VAT on the goods value plus freight. If you had your own German VAT number and EORI, you could recover the β¬1,614 VAT after import, bringing the real landed cost down to ~$816. This is the key tradeoff: DDP convenience vs VAT recovery.
DDP Risks & Hidden Traps
- Wrong HS code β a forwarder may classify your goods under a low-duty HS code to win the quote. If customs audits and reclassifies, you (or the forwarder) owe back duty + penalties, and cargo can be seized. Always get the HS code in writing and verify it.
- No VAT recovery β because the import is under the forwarder's EORI/bond, the VAT invoice is in their name. In the EU this can be 19β27% of goods value β a real cost you cannot reclaim unless you provide your own EORI.
- Section 301 / anti-dumping β US importers of certain Chinese goods (solar, steel, aluminum, some electronics) pay extra tariffs. A DDP quote must include these or the cargo gets stuck at US customs.
- Amazon FBA compliance β DDP to FBA requires correct FNSKU labeling, palletization, and weight limits. A mislabeled shipment gets refused at the Amazon warehouse, incurring return fees.
DDP for Amazon FBA
DDP is the most common shipping term for Amazon FBA sourcing from China. The forwarder:
- Clears US/EU customs under an importer of record (their bond or yours)
- Pays duty and VAT upfront
- Delivers palletized, FBA-labeled cargo to the Amazon warehouse
For FBA, confirm: (1) the importer of record β using your own EIN/EORI lets you deduct duty as a business expense; (2) whether the quote includes FBA prep and labeling; (3) the carrier's appointment scheduling with Amazon. Expect an FBA handling fee of $30β$80 per shipment on top of DDP freight.
How Yeatru Handles DDP Shipping
Yeatru Sourcing runs DDP sea, air and express from China to US, EU, UK, AU, GCC and LATAM. Our DDP service includes:
- Transparent HS-code declaration β we show you the code and duty rate before booking
- Option to use your own EORI (EU) or EIN (US) for VAT/duty recovery
- Sea, air and express DDP modes β we quote all three and recommend the cheapest for your weight
- Amazon FBA prep, palletization and warehouse appointment scheduling
- China export clearance + destination DDP clearance with real-time shipment tracking
Frequently Asked Questions
1. What is DDP shipping from China?
DDP (Delivered Duty Paid) is an Incoterm where the seller/forwarder pays for everything up to your door: China export clearance, ocean/air freight, insurance, import duty, import VAT/tax, and last-mile delivery. The buyer only receives the goods. It is the most hands-off shipping term, popular with small buyers and Amazon FBA sellers.
2. DDP vs FOB β what is the difference?
Under FOB, the supplier delivers goods onto the vessel at the China port and you pay freight, insurance, duty and delivery. Under DDP, the forwarder pays all of that and delivers to your door. FOB gives you control and usually lower freight cost; DDP is simpler but you cannot recover VAT in the EU unless the import is filed under your EORI. See FOB vs EXW vs DDP for the full breakdown.
3. Can I recover VAT with DDP shipping?
Usually no. Under standard DDP the forwarder is the importer of record (using their EORI), so the VAT receipt is in their name, not yours, and you cannot reclaim it. To recover EU VAT, provide your own EORI so the import declaration lists you as the importer β then the VAT invoice is in your name and recoverable.
4. Can I use DDP to ship to Amazon FBA?
Yes, DDP is the most common term for Amazon FBA shipments from China. The forwarder clears customs and delivers the palletized, FBA-labeled cargo to the Amazon warehouse. You need an importer of record (the forwarder's bond or your own) and the goods must meet Amazon's FBA prep and labeling requirements.
5. DDP vs DAP β what is the difference?
Both deliver to your door, but DDP includes import duty and tax (paid by the forwarder), while DAP does not β under DAP the buyer pays duty and VAT on delivery. DDP is simpler; DAP can be cheaper if you have a low duty rate or can recover VAT yourself.
6. How much does DDP shipping from China cost?
DDP cost = freight + duty (by HS code) + VAT/tax + last-mile. Sea DDP from China to the EU runs roughly $1.50β$3.50/kg; air DDP $6β$10/kg; express DDP $8β$15/kg. For a 500 kg sea shipment to Germany, expect around $1,500β$2,200 all-in including 19% VAT.
Conclusion
DDP shipping from China is the simplest way to get goods to your door β one all-in price covers freight, duty, VAT and delivery. It is the default for Amazon FBA and small buyers, but it costs 5β15% more than FOB+self-clearance and usually makes VAT non-recoverable because the forwarder is the importer of record. To use DDP safely, get the HS code in writing, verify it, and provide your own EORI if you need VAT recovery. Always compare DDP sea, air and express quotes at your weight. Get a free DDP quote from Yeatru β we'll show you the HS code, duty rate, and VAT breakdown, and let you use your own EORI/EIN for recovery.
