Customs & DDP
DDP and DAP part company on one line of Incoterms 2020 — who settles the import duty and tax. That line explains most of the gap between two quotes for the same lane.
Customs & DDP — what decides the number
DDP and DAP part company on one line of Incoterms 2020 — who settles the import duty and tax. That line explains most of the gap between two quotes for the same lane.
On DDP the seller carries cost and risk to the named address, import clearance, duty and import VAT or GST included. On DAP everything is identical except the buyer clears and pays. Same freight, same address, same transit. So when a DDP figure and a DAP figure look wildly apart, what you are looking at is the destination tax bill, not the freight.
A DDP number means nothing until you know what sits inside it. A complete one covers origin pickup, the export declaration, the main leg, destination clearance, duty, import VAT or GST, and the final delivery. Ask two questions and the picture clears: is import VAT inside the figure, and in whose name is the entry filed? Plenty of services sold as DDP file against a forwarder's or a third party's registration. That is fine for landed cost, but the import VAT is then not yours to reclaim — if you are VAT-registered and want it back, the entry generally has to be in your own name, which means DAP.
Duty follows the destination tariff code, never the Chinese export code. The first six digits of an HS code are the international standard; China runs to eight or ten for the export declaration and the destination adds its own — TARIC in the EU, HTSUS in the US, a ten-digit code in the UK. A supplier's code is a starting point and not an answer. Alongside the invoice, packing list and transport document you will usually need a certificate of origin where a preference applies, an MSDS for anything chemical, and an ISPM 15 heat-treatment mark on any solid wood packaging.
Key figures at a glance
| DDP (Incoterms 2020) | Seller pays freight, import clearance, duty and import tax |
|---|---|
| DAP (Incoterms 2020) | Seller pays freight; buyer clears and pays duty and tax |
| A complete DDP quote | Pickup · export clearance · main leg · import clearance · duty · import VAT · delivery |
| HS code | 6 digits international; the destination tariff sets the rate |
| European Union | EORI number, import VAT; IOSS for B2C consignments ≤ €150 |
| United States | Importer of record, customs bond, ISF 10+2 filed 24 h before loading |
| United Kingdom | GB EORI; postponed VAT accounting available |
| Wood packaging | ISPM 15 heat-treatment mark required on solid wood |
| Reclaiming import VAT | Needs the entry in your own name — normally DAP, not DDP |
Standard industry references (Incoterms 2020, IATA volumetric divisors, ISO container internal dimensions, SOLAS Chapter VI, ISPM 15). Rates, surcharges and free time are commercial terms and vary by carrier, lane and season — confirm them on your own quotation.
Where these shipments leave from
Our bookings originate at the Chinese gateways below. Which one your cargo uses depends on where the factory sits, the mode and the space available that week.
Port of Shanghai
Yangshan and Waigaoqiao terminals; the highest-frequency gateway for Europe and North America.
31.2304° N 121.4737° E
Port of Ningbo-Zhoushan
Yangtze Delta alternative to Shanghai, often with shorter yard queues at peak.
29.8683° N 121.5440° E
Port of Shenzhen — Yantian
Primary South China gateway for Pearl River Delta factories.
22.5850° N 114.2700° E
Guangzhou — Nansha
Strong on Africa, Middle East and Southeast Asia services.
22.7700° N 113.6000° E
Guangzhou Baiyun International
Largest South China freighter base; the default for Pearl River Delta air cargo.
23.3924° N 113.2988° E
Shenzhen Bao'an International
Electronics and battery-capable channels close to the Shenzhen supply base.
22.6393° N 113.8108° E
Shanghai Pudong International
China's busiest cargo airport; widest long-haul network.
31.1443° N 121.8083° E
Xi'an International Port
Highest block-train frequency to Europe.
34.3416° N 108.9398° E
Chengdu International Railway Port
Western China gateway; strong Poland and Germany services.
30.5728° N 104.0668° E
Customs & DDP
2 postsFrequently asked
Does a DDP price include import duty and VAT?
It should. Under Incoterms 2020 DDP places import clearance, duty and import tax on the seller. Because the term is used loosely in practice, ask for it in writing — specifically whether import VAT or GST is inside the figure.
What is the difference between DDP and DAP?
Only the import duty and tax. DAP delivers to the same place but leaves the buyer to clear the goods and pay the destination charges. Everything upstream is the same, which is why the two quotes differ by roughly the tax bill.
Can I reclaim import VAT on a DDP shipment?
Usually not, because the customs entry is generally filed in someone else's name. To reclaim import VAT you normally need to be the importer of record yourself, which means buying on DAP terms and handling clearance under your own registration.
Who is the importer of record on a DDP shipment?
Formally the seller, but the seller often needs an established entity or an indirect customs representative in the destination country to file the entry. Ask which entity appears on the declaration; that determines who holds the compliance liability.
What happens if customs reclassifies my HS code?
The duty rate changes and the difference is payable, sometimes with penalties. Under a genuine DDP arrangement the seller absorbs it; under DAP it lands on you. Either way, agreeing the destination tariff code before shipping is cheaper than arguing about it afterwards.