DDP Shipping: #1 Guide for 2024

DDP shipping or Delivery Duty Paid shipping, often referred to as “paid duty”, emerged as a popular choice for businesses hoping for a streamlined and transparent shipping experience.  

International shipping could be overwhelming, especially if you’re unsure of what the terminology is, or even the implications of choosing from the vast methods presented. 


What is DDP (delivered duty paid) Shipping?

DDP can significantly simplify your operations and provide numerous benefits, but what is DDP shipping?

The seller takes complete responsibility and bears all costs that are associated with delivery goods to the allocated destination, which typically is the buyer’s location. 

This includes:

  • Transportation: Shipping DDP is transportation from origin to destination, including any necessary mode changes (sea freight, air freight, or mixed). 
  • Export and Import Clearance: Handling all customs formalities and paperwork at both ends. 
  • Duties and Taxes: Paying all applicable export and import duties, taxes, and fees.
  • Terminal Handling Charges: Providing basic insurance coverage for the goods during transit. 
  • Insurance: Providing basic insurance coverage for the goods during transit. 

Essentially, DDP meaning in shipping is that the buyer receives the goods at their designated location without sustaining any additional charges or having to deal with the overwhelming complexities of customs. 

The Importance of DDP in International Trade

According to a report by Research and Markets, the DDP market is expected to reach $84.27 billion by 2027, growing at a CAGR of 6.23%. 

The growth and importance are linked to various factors: 

  • Increased Demand for Transparency and Predictability: DDP offers a fixed landed cost, eliminating hidden fees and surprises for both buyers and sellers. 
  • Enhanced Customer Experience: By taking care of all import formalities and duties, DDP simplifies the buying process for international customers, leading to higher satisfaction and repeat business. 
  • Improved Supply Chain Efficiency: DDP simplifies logistics by consolidating responsibility in the hands of the seller, potentially streamlining clearance procedures and reducing delays.

Incoterms: DDP vs. DDU vs. DAP

To better understand DDP, we need to look into DDP shipping terms. There are three common terms that often cause confusion, DDP, DDU, and DAP. 

DDP (Delivered Duty Paid)

As mentioned above, the seller takes complete responsibility for delivering goods to the destination or buyer’s location. 

This involved transportation, export and import clearance, duties and taxes, terminal handling charges, and insurance. 

DDU (Delivered Duty Unpaid)

DDP vs DDU: DDU involves the seller handling everything that DDP does except for import responsibilities and taxes and customs clearance destination ports. 

They deliver the goods at the designated port, and the buyer takes responsibility for the following: 

  • Import Formalities and Documentation: Managing custom clearance procedures at the destination port. 
  • Duties and Taxes: Paying all applied import duties, taxes, and fees. 
  • Unloading: Taking possession of the goods at the port. 

DDU requires the buyer to possess expertise in import formalities and better directed potential cost fluctuations due to duties and taxes. 

DAP (Delivered At Place)

The seller fulfills their responsibility by delivering the goods to the allocated destination in a ready-to-unload state. 

This includes: 

  • Transportation: Arranging all transport from origin to destination.
  • Delivery to Destination: Ensuring the goods reach the pre-designated location. 

Similar to DDU, the buyer handles, import formalities and documentation, duties and taxes, and unloading. 

How to Choose the Right Incoterm: DDP vs. DDU vs. DAP?

As with everything, the best way to choose the right incoterm, is dependent on your business needs: 

  • Cost: If cost is your primary concern, DDU or DAP might be the right choice, but keep in mind potential duty fluctuations. 
  • Convenience: DDP offers maximum ease for buyers, while DDU and DAP require more buyer involvement. 
  • Control: Sellers hoping for more control over the entire process might prefer DDP, while DAP and DDU offer cost benefits at the expense of some control.

Benefits of DDP Shipping

DDP shipping offers distinct advantages for buyers and sellers: 


  • Predictable Costs: A fixed landed cost eliminates hidden fees and surprises, simplifying budgeting. 
  • Convenience: No need to manage import formalities or pay any additional fees, further streamlining the purchase process. 
  • Customer Satisfaction: Predictable costs and faster delivery contributing to a better buying experience. 
  • Faster Clearance: Sellers prioritize DDP shipments, often leading to quicker customs clearance. 


  • Logistics: Consolidated responsibility potentially simplifying customs clearance and reduced delays. 
  • Control: Maintaining control over the entire shipping process ensures quality and adherence to specific requirements. 
  • Customer Satisfaction: A smoother purchase experience for buyers can further boost brand reputation. 

What are DDP Fees? 

While it is convenient, DDP comes at a cost, factored into product prices. It’s vital that you understand the breakdown of transportation, clearance, duties, and other charges. 

The seller needs to clearly communicate the DDP cost breakdown to avoid confusion. This is why it’s important to choose a seller with knowledge of destination country customs regulations to minimize delays and unexpected costs. 


DDP shipments can be tracked using the seller’s chosen DDP tracking systems. The seller should provide you with this information and keep you updated on the shipment’s progress. 

Keep in mind that the type shipping can impact tracking updates and systems. 

DDP Quotes

To compare costs and services, request DDP quotes from different sellers. Specify the origin destination, and the goods in as much detail as possible for the most accurate comparisons. 

DDP Shipping from China

There are many manufacturers and suppliers that offer DDP shipping from China. Be sure to conduct careful research to best understand if their reputation and experience ensures reliable and efficient services. 

DDP Shipping with Forceget

Forceget takes the paid duty in which our expert logistics team handles everything from transportation and customs clearance to import duties and terminal fees. 

Whether you’re an established business or a growing startup, Forceget tailors its services to your specific needs, providing access to high-speed Air Express and Air DDP/DDU options. 

Not to mention our extensive network and industry expertise allows us to assist in custom regulations efficiently, potentially minimizing delays and maximizing duty optimization. 

DDP (Delivery Duty Paid) Incoterm FAQs

Q1. What are the typical fees included in DDP shipping? 

DDP costs typically involve transportation fees, export and import duties/taxes, customs clearance charges, terminal handling fees, and insurance. 

Q2. Who benefits most from DDP Shipping?

Buyers and sellers can both benefit from the various advantages of DDP. Buyers appreciate predictability, transparency, and convenience, while sellers get to gain more control over the entire shipping process and potentially improve customer satisfaction. 

Q3. Are there any risks associated with DDP shipping? 

As the seller takes on more responsibility, it’s crucial to carefully calculate costs and choose reliable logistics partners to mitigate risks like shipment delays or customs complications.