Who is the Importer of Record (IOR) under DDP?

Incoterms 2020 places the import clearance obligation on the seller under DDP. The seller must use its own destination entity (e.g., US EIN, EU EORI, UK VAT number) or have a freight forwarder/3PL act as IOR. IOR requirements vary by country — confirm with your forwarder before signing.

Should I ship to Amazon FBA on DDP or DAP?

Amazon FBA warehouses do not accept DAP shipments — FBA does not pay duties or handle clearance on your behalf. FBA inbound effectively requires DDP (duty-paid, delivered to the FC). You need a valid importer tax ID (US EIN, EU EORI, etc.) or use a DDP service provider that fronts the clearance.

DDP Shipping from China: Door-to-Door Duty Paid Guide

Q: What is the difference between DDP and DAP?

Under DAP (Delivered at Place) the seller delivers goods to the buyer's named place but the buyer pays import duties, VAT, and handles import clearance. Under DDP (Delivered Duty Paid) the seller takes on everything in DAP plus import duties, VAT/GST, customs broker fees, and IOR responsibility — essentially 'all-in to the door'.

Q: Does DDP include destination VAT?

Per Incoterms 2020 definition, yes — DDP includes all duties, VAT, and consumption taxes incurred at import. However, under the EU IOSS regime, B2C parcels under €150 have VAT prepaid by the marketplace, so a DDP quote should clarify whether IOSS VAT is deducted. State 'including/excluding VAT' explicitly in the contract.

Q: What are the common pitfalls in a DDP quote?

Common traps: (1) base clearance quoted but missing ISF/AMS/ENS manifest fees; (2) low-balling HS code to suppress duties — triggers customs inspection and penalties; (3) sudden duty hikes (Section 301, anti-dumping) cannot be passed on to the buyer; (4) remote-area surcharges at final mile; (5) FBA refusal — duties already paid are typically non-refundable. Lock HS code, declared value basis, FX rate, and force majeure terms in writing.

One-line takeaway

DDP (Delivered Duty Paid) is the Incoterms 2020 term where the seller bears every cost, duty, and risk from origin all the way to the buyer's named delivery point — the most seller-onerous term in the set. It is the default for Amazon FBA inbound, DTC parcels, and overseas-warehouse replenishment from China. Quoting DDP requires accurate destination duty, VAT, broker fee, last-mile cost, potential anti-dumping duty, and IOR liability estimates — get one of them wrong and a single shipment can wipe out the margin.

1. What is DDP?

DDP stands for Delivered Duty Paid, defined by the ICC's Incoterms 2020 as the term with maximum seller obligation. In plain English: the buyer opens the door and receives the goods — the seller takes care of everything else.

Incoterms 2020 places seven obligations on the seller under DDP:

Export clearance and export duties (in China)
Main carriage (ocean, air, rail)
In-transit risk of loss or damage
Import clearance in the destination country
All destination duties, VAT, GST, excise, and government fees
Domestic transport at destination including last-mile delivery
Acting as the legal Importer of Record (IOR)

The buyer has exactly one obligation: have the receiving site ready. DDP is the seller's all-inclusive bundle; DAP is "seller to door, buyer clears"; EXW is "buyer picks up at seller's warehouse" — the three terms allocate responsibility in opposite ways.

2. DDP vs DAP vs DDU — at a glance

This is the comparison buyers ask about most often. Worth keeping in your sales deck.

Obligation	EXW	FOB	CIF / CFR	DAP	DDP
Export clearance	Buyer	Seller	Seller	Seller	Seller
Main freight	Buyer	Buyer	Seller	Seller	Seller
Insurance	Optional	Optional	CIF seller / CFR buyer	Optional	Optional
Import duties	Buyer	Buyer	Buyer	Buyer	Seller
Import VAT/GST	Buyer	Buyer	Buyer	Buyer	Seller
Import clearance	Buyer	Buyer	Buyer	Buyer	Seller
Last-mile delivery	Buyer	Buyer	Buyer	Seller	Seller

* DDU (Delivered Duty Unpaid) was replaced by DAP back in Incoterms 2010, but the term is still widely used colloquially — they mean the same thing.

3. DDP end-to-end workflow (9 stages)

Quote & routing: buyer provides commodity, HS code, value, units, volume/weight, destination ZIP, and consignee tax ID status. Forwarder calculates freight + duty + VAT + clearance + last mile + margin into a duty-paid all-in price.
Contract: nail down delivery point (FBA FC / overseas warehouse / customer DC), billing method, IOR responsibility, FX lock, and force majeure clauses.
Booking & pickup: ocean/air/rail booking, supplier delivers or forwarder picks up from factory.
China export clearance: declaration under regime 0110 (general trade), 9610 (B2C cross-border), 9810 (B2B cross-border warehouse), etc.; export declaration, invoice, packing list, POA in order.
Main carriage: ocean (FCL/LCL), air (direct/transshipment), or sea+truck/sea+air combinations.
Pre-arrival filing: 24-72 hours ahead, file ISF (US), AMS (US), ENS (EU), ACI (Canada).
Import clearance & duty payment: use IOR tax ID, pay duty and VAT; T1 transit allowed within EU customs union.
Last-mile delivery: parcel (UPS/FedEx/DHL), LTL/FTL trucking to FBA, or buyer pickup.
POD & reconciliation: Proof of Delivery notification, account close-out, China VAT export refund filed on the 10-digit HS basis.

4. What's in a DDP quote

A standard US-bound FBA DDP quote typically rolls up nine cost buckets:

Bucket	Typical line items	Notes
1. Origin domestic	Pickup, export declaration, inspection, warehouse loading	Per box / per shipment / per truck
2. Main freight	Ocean / air base rate + BAF/FSC + PSS	Largest single bucket
3. Origin port	THC, ISPS, doc fee, booking fee, telex release	Both ends may apply
4. Pre-arrival filing	ISF (US, $25-50), AMS, ENS, ACI	Missing file → $5,000+ penalty
5. Destination port	Destination THC, DDC, terminal handling, pickup	Varies by port
6. Destination duty	HS code rate × declared value	US adds MPF and HMF
7. Destination VAT/GST	EU 17-27% / UK 20% / Canada 5% GST + provincial	Base = value + duty + freight
8. Customs brokerage	Broker fee, release, IOR service	$80-300 per shipment
9. Last mile	Trucking/parcel, fuel, remote-area surcharge, Amazon appointment	FBA requires booking slot

5. Estimating duty and VAT

Duty estimation is the riskiest part of a DDP quote. Underestimate by five percentage points and the whole shipment's margin can be gone. A four-step method:

Step 1: Confirm the destination HS code. The first six digits are globally harmonized; each country extends from there. Verify on US HTS, UK Trade Tariff, EU TARIC, or the destination tariff database.
Step 2: Look up MFN rate and special surcharges. Confirm (a) MFN rate, (b) any GSP / FTA preferential rate eligibility, (c) Section 301 list status (US-China), (d) anti-dumping / countervailing duty exposure.
Step 3: Apply the right duty base. US duty is on FOB value; EU and UK duty is on CIF (value + freight + insurance); VAT base then includes the duty itself. The wrong base produces a wide estimate error.
Step 4: Add buyer-side sales/GST. US states largely do not collect sales tax at import (Amazon marketplaces handle it); Canada has GST + PST/HST per province; Australia has 10% GST below A$1,000 collected by marketplace.

Example: $10,000 FOB shipment, HS 6109.10.0040 (cotton T-shirts), exporting to the US. Duty = $10,000 × 16.5% = $1,650; MPF = $10,000 × 0.3464% = $34.64 (min $31.67, cap $614.35); HMF (ocean) = $10,000 × 0.125% = $12.50. Duty-related total: $1,697.14 — and that's before freight or brokerage.

6. Destination IOR requirements

Country / Region	IOR tax ID	Key notes
United States	EIN (IRS) + customs bond (single-entry or continuous)	FBA inbound DDP often uses the seller's US EIN or a forwarder-fronted EIN; commercial imports require CBP Form 5106 registration
European Union	EORI (per member state) + local VAT registration	Common IOR via Belgium / Netherlands / Germany; IOSS for B2C parcels ≤€150
United Kingdom	GB EORI + UK VAT	Post-Brexit separate from EU; PVA available for deferred VAT
Canada	BN (Business Number) + Import-Export Account	Needs a Canadian entity, or use a customs broker as NRI (Non-Resident Importer)
Australia	ABN (Australian Business Number)	B2C ≤A$1,000 GST collected by marketplace
Japan	JCT (Qualified Invoice Issuer, mandatory since 2023)	Cross-border sellers must register or buyers cannot claim input VAT
Russia	INN (Russian consignee tax ID)	EAC compliance + licensed customs broker required

7. Seven risks worth pricing in

Sudden duty hikes: Section 301, anti-dumping reviews, EU CBAM carbon adjustment can activate mid-shipment. Lock "tariff changes pass to buyer" or "FX/tariff valid 30 days" in the contract.
HS under-declaration: Some forwarders trim DDP quotes by misdeclaring HS. When customs inspects, the resulting penalty and credit-rating downgrade dwarfs the duty saved.
FX volatility: DDP is typically quoted in USD, but destination duty is paid in local currency. A 30-60 day cycle plus a 2% FX swing eats margin.
IOR liability dispute: When the forwarder fronts the IOR, you must agree in writing who carries customs audit and tax-recovery liability.
Refusal / return: Once FBA or buyer refuses, duty and VAT are usually non-refundable. Define the return playbook upfront.
Remote-area surcharge: US ZIP 4-5 zones, EU islands, northern Canada, AU outback — $30-150 per shipment in last-mile surcharges. Disclose in the quote fine print.
Compliance gaps: Missing FDA (US food/drug), CE/UKCA (EU/UK), SASO (Saudi), or INMETRO (Brazil) certifications stop clearance dead. Compliance vetting is part of any proper DDP service.

8. DDP in cross-border ecommerce

Amazon FBA inbound: US West/East ocean+truck / air / air+truck — must be DDP duty-paid to the FC. FBA does not accept DAP.
DTC parcels: Shopify and WooCommerce sites use DDP so checkout shows a duty-inclusive landed price — measurably higher conversion.
Overseas warehouse replenishment: Third-party fulfillment networks (Flexport, ShipBob, etc.) usually require DDP to the warehouse door.
Small B2B: EU B2B buyers increasingly prefer DDP to simplify their bookkeeping and IOSS/PVA handling.

9. 10-point DDP contract checklist

Exact delivery address (street + receiving window)
HS code and declared-value basis (FOB or CIF)
Whether destination VAT / consumption tax is included
Who acts as IOR and who carries legal liability
Whether last-mile remote-area surcharge is included
FX lock method and validity
Force majeure (pandemic, strike, war, port congestion)
Returns policy (duty/VAT recoverability, return cost split)
Packaging and labeling (FBA labels, overseas-warehouse barcoding)
Payment terms (deposit, T/T, L/C)

10. How Mighty International can help

With 26 years of operations at Qingdao port, we provide turnkey DDP service from China to all major markets:

US West / East FBA ocean+truck, air, air+truck DDP all-in (with EIN fronting and bond)
EU / UK DDP duty-paid (with IOSS / PVA registration and filing)
Russia, Middle East, Southeast Asia DDP (with EAC / SASO / SABER compliance)
Overseas warehouse DDP replenishment
Destination HS double-check and duty estimation — no under-declaration shortcuts
DTC landed-price calculator integration for your checkout

Need a DDP quote?

Send us your commodity, HS code, units / volume / weight, and destination ZIP — duty-paid all-in pricing within one business day.

Request a Quote

Frequently asked questions

What is the difference between DDP and DAP?

Under DAP, the seller delivers but the buyer pays import duties, VAT, and handles clearance. Under DDP the seller does everything — duties, VAT, clearance, last mile.

Does DDP include destination VAT?

Per Incoterms 2020, yes. But EU IOSS handles B2C ≤€150 VAT via the marketplace — clarify "including / excluding VAT" in the contract.

Who is the Importer of Record under DDP?

The seller. The seller must use its own destination entity (US EIN, EU EORI, UK VAT, etc.) or arrange a freight forwarder / 3PL to act as IOR.

What are the common pitfalls in a DDP quote?

Missing pre-arrival manifest fees, HS under-declaration, sudden duty hikes, remote-area surcharges, FBA refusal with non-refundable duty. Lock HS, duty basis, FX, and force majeure terms in writing.

Should I ship to FBA on DDP or DAP?

FBA does not accept DAP. FBA inbound effectively requires DDP. You need a valid importer tax ID or a DDP provider fronting the clearance.

References & further reading

Incoterms® 2020 (International Chamber of Commerce, ICC)
US Customs & Border Protection — cbp.gov
EU TARIC database — TARIC
Related guides: HS Code Lookup & Classification, Incoterms 2020: FOB / CIF / CFR / DDP Explained

Disclaimer: This guide is general informational content. Specific duty rates, IOR requirements, and regulatory policies are subject to the destination country's current customs rules. Confirm with your customs broker before each shipment.