If you have ever imported from China and been hit with an unexpected customs bill two weeks after delivery — you understand why DDP exists. DDP (Delivered Duty Paid) is the only shipping term that guarantees the price you are quoted is the price you pay. No surprise fees, no last-mile headaches.
This guide explains how DDP works, what it includes, what it costs, and when you should insist on it. We have been running DDP to the US, UK, EU, and Australia for over a decade from our Yiwu factory.
01.What DDP Actually Means
DDP is one of the Incoterms 2020 rules published by the International Chamber of Commerce. Under DDP, the seller takes on full responsibility for delivering the goods to the buyer's named destination — and pays all costs in transit, including duties, taxes, and customs clearance.
For you as a B2B buyer, this means: the price we quote includes everything from our factory floor to your door. No surprise customs bill, no separate freight forwarder invoice, no last-mile delivery charge. One price, one invoice, one delivery.
02.DDP vs FOB vs EXW
EXW (Ex Works): you pay for everything from our factory door onward. Cheapest on paper, most expensive in practice if you don't have a US/EU customs broker.
FOB (Free On Board): we deliver to the origin port. You pay ocean freight, duties, customs, last-mile. Standard for large bulk orders.
DDP (Delivered Duty Paid): we deliver to your door. We pay ocean freight, duties, customs, last-mile. One price. The most expensive on paper, but the safest and most predictable.
03.What DDP Includes
Our DDP quote includes: production, quality control, export packaging, ocean or air freight, US/EU customs clearance, import duties and taxes, last-mile delivery to your address, and basic insurance.
It does not include: unloading at your site (liftgate), inside delivery, or customs duties on restricted items (some branded goods require special clearance).
04.How Much Does DDP Cost?
DDP is typically 8-15% more expensive than FOB on a like-for-like basis, because the factory absorbs the freight, duty, and customs risk. For a 500-piece apparel order to the US, the total DDP premium is usually $300-800 — a small price for the certainty of a single landed cost.
For smaller orders, DDP is often cheaper than FOB because you don't pay for your own customs broker ($150-300 per entry) or freight forwarder coordination.
05.When to Use DDP
DDP is the right choice when: (1) you are ordering under 1,000 pieces, (2) you don't have a US/EU customs broker, (3) you want one predictable landed cost for budgeting, (4) you are selling to end customers who expect transparent pricing, (5) you are time-constrained and can't wait for a separate freight quote.
FOB is the right choice when: (1) you have a standing freight forwarder relationship, (2) you are ordering 5,000+ pieces and want to negotiate your own freight rates, (3) you have an FTZ or bonded warehouse where you want to defer duty.
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