Understanding DDP: What "Delivered Duty Paid" Really Means for Your Import Costs

For small and mid-sized importers, few terms cause more confusion — or more billing surprises — than “DDP.” This guide breaks down exactly what Delivered Duty Paid means, what it should include, and how to make sure your forwarder’s quote is truly all-in.

What DDP Actually Covers

A true DDP quote bundles ocean or air freight, export customs clearance in China, import customs clearance and duties in the US or Puerto Rico, and final delivery to your door — all under one rate, arranged before the cargo ships.

Where Importers Get Surprised

Some forwarders advertise DDP but quietly exclude destination charges, storage fees, or duty pre-payment financing costs. Always ask your forwarder to itemize what’s included versus what could still be billed separately.

Questions to Ask Before You Book

Does the quote include duties calculated from the correct HTS code? Is destination drayage and last-mile trucking included? Is there a cap on accessorial charges? A transparent forwarder should answer all three without hesitation.

The Bottom Line

DDP shifts the risk of customs delays and cost overruns from you to your freight partner. That only works if your partner is upfront about what’s included from day one — which is exactly how we build every quote.