DDP Incoterm 2025: What You Need to Know About Customs Clearance

Created on 08.26

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Let’s Start with a Real Story

Back in early November of 2024, we had a client – a small shop in California that sells home décor stuff – freaking out trying to get ready for Black Friday. They'd just ordered 800 ceramic lamps all the way from a supplier in Foshan, China.
The supplier was super confident, pushing DDP (Delivered Duty Paid): Don't sweat the customs stuff or taxes, they said. We'll handle it all. Just chill and wait for the delivery.
Sounds ideal, doesn't it?
Well, things went south when the shipment landed in Long Beach. A customs person stopped the lamps because the HS code was wrong for what they were. It was up to the supplier to fix it, but the containers sat at the port for four extra days. The lamps got to the stores just in the nick of time, but the shop had to pay extra to get them distributed super fast.
That's what DDP is like in the real world – easy to use, but it's not a miracle trick. You still need to do things the correct way with the right paperwork, so things don't get held up.

What DDP Means in 2025 (and Why Importers Like It)

Delivered Duty Paid is one of the Incoterms® 2025 rules. In plain English, it means the seller handles everything—from export clearance in their own country to import clearance and delivery at your doorstep.
If you’re the buyer, you receive goods ready to sell. If you’re the seller, you’re shouldering almost all of the risk and responsibility.
Step
Seller’s Job
Buyer’s Job
Export clearance
Freight & insurance
Import clearance
Paying duties & taxes
Final delivery
For small businesses and e-commerce sellers, DDP is attractive because it eliminates surprise costs and customs headaches. It’s the closest thing to “door-to-door” in international trade.

The DDP Customs Process, Step by Step

Let's break down how DDP customs clearance works for importers, using a shipment from China to the USA as our example.
1. Double-Check Your Contract
Before anything ships, make sure both you and the seller agree on a signed contract that:
  • Clearly states Delivered Duty Paid based on Incoterms 2025.
  • Includes the correct HS codes for each item.
  • Spells out the delivery location and who pays for what.
2. Export Clearance in China
In China, the seller needs to get these documents together:
  • Commercial invoice
  • Packing list
  • Export declaration
Without these, your stuff is stuck.
3. International Shipping
You can choose between air freight if you need it fast, or sea freight to save money.    
Pro tip: A lot of suppliers group shipments from different buyers to lower the freight costs.
4. Import Clearance in the USA
Once it arrives in the US, the seller (or their DDP customs broker) needs to file the right paperwork with Customs and Border Protection (CBP). Messing up the HS codes or product descriptions here is a common reason for delays.
5. Duties and Taxes
With DDP, the seller takes care of these payments before your shipment gets released.
6. Final Delivery
From the port or airport, your goods are transferred to local trucking companies or delivery services, who bring them to your warehouse or fulfillment center.

Documents You’ll Need for Smooth DDP Clearance

To keep customs officers happy and shipments moving:
  • Commercial Invoice – Make sure your HS codes are right, give good product descriptions, and state the correct value and currency.
  • Packing List – Include the number of boxes, their sizes, and weight.
  • Bill of Lading / Air Waybill – This is your proof that the shipment exists.
  • Certificate of Origin –You'll need this for some trade perks.
  • Import Licenses – Only needed if your product has rules.
  • Tax Identification Number – For shipments to the U.S., this is usually an EIN.
💡 Pro tip: At Dafey, we run through a DDP customs clearance checklist with every client before goods leave the factory. It’s much cheaper to fix an issue on paper than in port.

Common Pitfalls in DDP Shipments (and How to Avoid Them)

Pitfall
Why It Happens
Fix It Before It Hurts
HS code blunders
Guesswork instead of confirmation
Pay a licensed broker to verify
Undervaluing goods
Trying to save on duties
Declare the real value—penalties aren’t worth it
Missing licenses
Skipping research
Check rules before ordering
Vague contracts
No clear division of duties
Write down who handles what
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DDP vs DDU — Choosing What Fits

If you want zero customs headaches and a single predictable bill, DDP is usually the better choice—ideal for first-time importers or busy Amazon FBA sellers. DDU, on the other hand, makes the buyer take care of import duties and clearance. This can be good if you already have a customs broker you trust.
Like Maersk's guide says, DDP covers everything until the package is done being delivered. DDU (now DAP in Incoterms® 2020) means you pay the duties and taxes when it gets to you. For small online shops, DDP's reliability is often better than any savings you might get with DDU.

Real-World Run: China to Amazon FBA

One of our kitchenware clients shipped 1,500 units from Yiwu to a Texas Amazon FBA center under Dafey’s DDP service.
  • 4 days for export clearance
  • 12 days at sea
  • 48 hours for U.S. customs
  • 2 days for final delivery
They didn’t get a single surprise bill, and their in-house team didn’t lift a finger on the logistics side.

DDP in 2025: Trends to Watch

  • Customs Checks Getting Tighter: Undervalued shipments are under the microscope.
  • E-Commerce Growth: More sellers are asking for full-service DDP.
  • Bundled Pricing: One quote covering freight, clearance, duties, and final delivery is becoming standard.

FAQ: DDP Shipping

Q1: Who pays customs duties in DDP?
The seller. That’s the defining difference from DDU.
Q2: Is DDP pricier?
Most of the time, yeah. But keep in mind that it covers all those clearance costs, taxes, and duties, so you won't get hit with unexpected charges later.
Q3: What if customs runs into a problem?
The seller's got to sort it out. Just know that this might cause things to slow down. Getting the paperwork right is super important.
Q4: Does DDP work for everything?
No. Some countries have rules about what you can and can't bring in. Think booze or hazardous materials.
Q5: What's the difference between DDP and DAP?W
With DAP, the seller gets the stuff to you, but you have to pay any import taxes.
Q6: How can I ensure smooth DDP clearance?
Work with a provider experienced in DDP shipping customs duties and taxes explained and review all paperwork before the goods leave.
Q7: Is DDP a good fit for Amazon sellers?
Yes—especially from China to the U.S.—because it streamlines delivery and clearance.

The Key Takeaway

DDP is liked because it saves buyers from dealing with customs headaches. But just because something is Delivered Duty Paid doesn't mean there's no risk involved. To really make DDP easy, you need clear agreements, complete paperwork, and a trustworthy logistics partner like Dafey.

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