Small first orders, and what DDP actually changes

On a small trial order, the shipping term matters as much as the price. DDP is the one most first-time importers ask for, and it is worth understanding exactly what it puts on each side.

What DDP means under Incoterms 2020

Delivered Duty Paid places the maximum obligation a seller can take. Under DDP the seller:

• obtains the export licence and completes export clearance;
• obtains the import licence and completes import clearance;
• pays the customs duties, the import VAT and any other charges at destination;
• carries the risk until the goods are delivered to the named place.

Compare that with the two terms either side of it. Under FOB the seller clears export and loads the goods on the vessel, and the buyer does everything after that. Under DAP the seller delivers to the named place but the buyer still handles import clearance and pays the duties. DDP moves all of that to the seller.

Why it is attractive on a small order

One landed price and no customs account needed at your end. For a trial order, or a first shipment into a market where you have not yet registered for VAT, that is a real simplification: you know the total cost before the goods move.

The question to settle first

Under DDP the seller becomes, in effect, the importer of record. That is not always possible in practice. Some markets require a local VAT registration or a fiscal representative before anyone can clear goods as importer, and a factory in China does not hold one in every country. Where that is the case, the workable alternative is usually DAP with your own broker clearing at destination, or DDP through a forwarder who already holds the necessary registration.

So the first question is not the price, it is this: who can legally be the importer of record in the destination country? Answer that and the term usually picks itself.

It is also worth remembering that DDP moves the customs logistics, not the regulatory duty. If you are the importer of record, the CPSIA certificate in the US, the CE declaration in the EU and the packaging EPR registration still belong to you, whichever term is on the invoice.

What to send for a delivered price

A DDP quotation is only meaningful if it is specific. Send:

• the full delivery address, not just the destination port, because DDP is a delivered term;
• the item numbers and quantities you are considering;
• the declared value you intend to use, since duty and VAT are calculated on it;
• whether the delivery point is a commercial warehouse or a residential address, as the last leg is priced differently;
• the HS code if you already have one.

We accept DDP into the markets we ship to. Where a market requires a local registration we cannot hold, we will say so up front and quote DAP instead so your own broker can clear the goods.

On size: the minimum order is 3,000 pieces for anything under 15 cm and 300 pieces at 15 cm or above, so a small trial order is usually built around one or two large items — an animal hopper, a plush bounce ball — with smaller lines added to fill the load.

Send the delivery address, the item numbers and the value you intend to declare, and we will come back with a landed figure. Start an enquiry.

Incoterms are a standard framework, not a quotation. The term only binds once it is written into your order with a named place, so confirm it in writing on the order rather than in messages.