How Does DDP Work?

Get a Quote

• You provide us with detailed information, including cargo details, packaging dimensions, and destination zip code.
• We give you an all-inclusive quote based on live carrier rates. This quote clearly lists every charging item. There are no hidden fees in the post process.

Document and HS Code Pre-Audit

Before we pick up your goods from your suppliers, our compliance team steps in. We will double-check your commercial invoices, packing lists, and HS codes thoroughly, and pre-calculate accurate localized taxes. In this way, we smooth out potential risks during customs clearance before departure.

We Pick Up and Consolidate

We pick up your goods from your suppliers’ factories and consolidate them into a whole package. By optimizing space, we reduce the freight rate for you. When your goods arrive at our warehouse in China, we inspect their quality and quantity and take photos and videos for you.

International Transit

You can choose your routes from flexible shipping methods, such as ocean freight, air freight, land freight, and international express couriers. We offer milestone tracking in this process.

Customs Clearance and Duty Pre-Paid

When your cargo arrives at the destination port, our own or cooperative team will instantly take over it. The professional broker will handle all the complex import declarations under our own corporate bonds. 

Under normal customs clearance conditions, charges of standard duties, taxes, and agreed logistics are included in our quotation. In this way, your cargo will be released immediately by skipping terminal bottlenecks.

Last-Mile Delivery

We arrange last-mile delivery right after customs clearance to your destination address with truck delivery and local express available.

Does Your DDP Service Mean I Don’t Need an Import License or Tax ID at Destination?

Yes, it does in most major destinations. Under our DDP framework, DFH Logistics uses our own local entities or established commercial bonds to act as the Importer of Record (IOR).

This allows your business to import into many major destinations where we can act as Importer of Record (IOR). In this way, we may reduce (or eliminate) the need for local import registration in certain cases.

What’s the Difference Between DDP and Other Common Terms (DDU/DAP, FOB, EXW, CIF)?

• CIF includes cost, freight, and cargo insurance to the named destination port. The cargo insurance coverage is provided based on the Incoterms® requirements.
• DDP includes the import duties and taxes. In some nations, the customs may require the consignee to provide additional information or documentation to complete the import process.
• DDU is replaced by DAP (Delivered at Place) in Incoterms® 2010 and is no longer an official Incoterms® rule.

What Types of Commodities Are Prohibited or Restricted Under Your DDP Framework?

We have a strict limitation on cargo types, including dangerous chemicals, flammable gases, illegal counter-branded electronics, and unlicensed medical narcotics.

As for highly regulated materials like standalone lithium batteries, we require pre-approval and UN38.3 test report, MSDS, and applicable DG documentation for DDP shipping service.

When Should I Use FCL Shipping vs LCL Shipping?

Can We Use DDP Shipping if Our Purchase Contract With the Supplier Is on FOB Terms?

Yes. If your contract is under the FOB term, your supplier in China will deliver your goods to the named port of shipment and complete export clearance. Responsibility transfers once goods are loaded on board.

After receiving your goods, DFH Logistics will take over absolute control and transfer the shipment to the DDP method. We will handle international transit and last-mile delivery.

How Are Import Duties and VAT Calculated, and Who Pays Them Beforehand?

We pre-calculate all projected duties, tariffs, and localized taxes based on your products’ precise HS Code and commercial value. We will pay these fees to the destination customs authorities using our credit lines on your behalf. All the costs will be wrapped into your single invoice.

What Happens if the Destination Customs Authorities Conduct a Random Container Inspection? Who Pays the Exam Fees and Storage Charges?

This is where many cheap DDP forwarders surprise clients with hidden bills, and we fully understand your worries.

In DFH Logistics, our localized Importer of Record (IOR) handles the inspection process directly when customs conduct a random inspection.  As long as the cargo information you provided was 100% accurate and compliant, we will pay the handling fees for a standard routine inspection.  

We do not retain cargo or send unexpected invoices for standard clearances under normal, transparent clearance conditions.

My Products Are Subject to Anti-Dumping Duties (ADD) or Specific Trade Barriers (Like Section 301 Tariffs in the US). Can We Still Use DDP?

Yes, you can. But we have to proceed with a strict pre-audit.

High-tariff and anti-dumping goods are the primary focus of customs scrutiny. Our compliance team will pre-audit your specific product catalog and HS codes. If your goods are eligible, we will handle them through our specialized trade-compliant DDP channels. We will also calculate the exact duty exposure before shipment. This ensures you will not face retroactive penalty lawsuits or sudden container seizures at the border.

How Do DDP Shipping Requirements Differ by Destination Country, and What Should I Check Before Placing an Order?

Customs regulations, tax policies, and inspection requirements of each country may change over time. The table below is for a quick reference only. For detailed and the newest information, please contact our service team.