DDP — Delivered Duty Paid — is the term where the seller quotes a delivered price and carries duty and import tax. To test whether that price is fair, rebuild it from the bottom: goods, freight, insurance, duty, import tax and the local charges at the border. The worked example below holds a shipment of 100 units of machinery from China constant at $30,000 FOB.
The DDP build-up for UK
Each line below is modelled separately, so you can compare a seller's DDP number against the same structure. Duty and import tax are rule-based; freight and local charges are estimates with a low and high case.
China → UK · Machinery · 100 units
| Cost line | Amount | Evidence |
|---|---|---|
| FOB goods value | $30,000 | User provided |
| International freight (FCL 40ft) | $5,900 | Estimated |
| Cargo insurance | $162 | Estimated |
| Customs duty (1.7% × CIF) | $613 | Rule-based |
| Additional measures | $0 | None modelled |
| Import VAT / GST (20%) | $7,335 | Rule-based |
| Statutory fees | $0 | Rule-based |
| Clearance, port, inland, docs | $970 | Estimated |
| Estimated landed total | $44,980 | $450 / unit |
Sample generated with engine 2026.11.1 and data reviewed 2026-11-01. It is not a quote, a classification or a customs ruling.
Duty and tax by category at this border
Nine product families, the same China origin and a representative shipment per family. Open a route file for the full breakdown and the assumptions behind that number.
| Category | Duty band | VAT / GST | Sample landed | Per unit | |
|---|---|---|---|---|---|
| Machinery | 0%–2.7% | 20% | $44,980 | $450 | Estimate → |
| Audio equipment | 0%–4.5% | 20% | $27,322 | $273 | Estimate → |
| Parts & components | 0%–2.7% | 20% | $29,104 | $58 | Estimate → |
| Electronics | 0%–4% | 20% | $24,534 | $82 | Estimate → |
| Furniture | 0%–4% | 20% | $35,571 | $356 | Estimate → |
| Apparel | 0%–12% | 20% | $22,306 | $22 | Estimate → |
| Auto parts | 0%–4.5% | 20% | $35,672 | $71 | Estimate → |
| Chemicals | 0%–6.5% | 20% | $19,892 | $995 | Estimate → |
| Vehicles | 10% | 20% | $64,549 | $21,516 | Estimate → |
Category bands are planning ranges, not binding rates for a specific 8–10 digit line. No additional origin-specific measure is modelled for this family.
Local charges modelled at this border
These are the fixed costs after the container arrives. They do not move with the goods value, which is why small shipments carry a higher percentage burden than full containers.
| Charge | Low | Base | High | What it covers |
|---|---|---|---|---|
| Customs clearance & broker | $160 | $260 | $420 | UK Customs Declaration Service entry and release. |
| Port handling & terminal | $180 | $280 | $460 | Terminal handling at a major UK container port. |
| Inland delivery | $200 | $340 | $580 | Delivery to a nearby UK warehouse. |
| Documentation & filing | $50 | $90 | $130 | CDS entry and documentation. |
What a DDP price still does not cover
DDP moves commercial responsibility for the delivery, not every obligation. These items sit outside the model and often outside the quote:
- Importer of record. Many markets require a local registrant, tax number or EORI. A DDP seller can pay the duty but cannot make you the legal importer by wording alone.
- Product compliance. An EORI number is required for the importer of record. UKCA or CE marking may apply depending on the product and the market rules in force.
- Measures not modelled by category. Anti-dumping, countervailing and quota actions attach to specific origins and lines. Confirm the exact line before you rely on a category band.
- Detention, demurrage and remote delivery. Free time at the terminal and the inland radius are commercial terms. A DDP quote that assumes a nearby warehouse will reprice for a remote address.
- Tax recovery. Import VAT is recoverable only if you are registered and can claim it. If you cannot, the DDP price is a real cost, not a cash-flow item.
FOB, CIF, DAP or DDP?
The Incoterm decides who buys the freight, who clears the border and who pays the tax. It does not decide who is legally the importer of record.
| Term | What the seller covers | Freight | Insurance | Duty | Import VAT |
|---|---|---|---|---|---|
| FOB | Goods loaded at the origin port | Buyer | Buyer | Buyer | Buyer |
| CIF | Goods, freight and insurance to the destination port | Seller | Seller | Buyer | Buyer |
| DAP | Goods delivered to a named place, not cleared | Seller | Seller | Buyer | Buyer |
| DDP | Goods delivered, cleared, duty and tax paid | Seller | Seller | Seller | Seller (recoverable if registered) |
Common questions
How do I calculate import duty from China to United Kingdom?
Start with the CIF customs value: FOB goods plus international freight plus insurance. Duty is assessed on CIF (customs value includes freight and insurance to the UK border). For machinery the planning band is 0%–2.7% with 1.7% as the base case, then 20% import VAT is added on CIF plus duty. The worked sample lands 100 units at $44,980 expected.
Is a DDP price the same as landed cost?
No. A DDP quote is one number from a seller; landed cost is your own rebuild of the same shipment. They should reconcile: FOB, freight, insurance, duty, additional measures, import tax, statutory fees and local charges. If a DDP price is far below your rebuild, ask for the duty and tax lines in writing, because a DDP seller may still be using a customs value or a duty rate you would not use as importer of record.
What import VAT or GST applies in UK?
20% UK import VAT is generally due at the border. Most VAT-registered importers recover it through their return. The sample shows $7,335 of import tax on this shipment. VAT treatment depends on who is registered as importer of record, which is a legal status a DDP seller cannot transfer by contract.
Which local charges are included at UK?
The model includes customs clearance & broker, port handling & terminal, inland delivery, documentation & filing. Base-case local charges total $970 for this sample. Ports in the model are Felixstowe, Southampton, London Gateway.
How long does sea freight from China take?
Typical sea transit is 33–43 days port to port. Add clearance, documentation and inland delivery before you read that as a delivery date. The sample uses FCL 40ft and $5,900 of international freight.
What can change the number after a quote?
An EORI number is required for the importer of record. UKCA or CE marking may apply depending on the product and the market rules in force. The UK Global Tariff differs from the EU tariff on some lines. Import VAT is recoverable for registered businesses.
Sources & review dates
The border rules behind this page are kept with their source and review date. A rate is only useful if you can see which rule and which date produced it.
| Source | Reviewed |
|---|---|
| UK Trade Tariff | 2026-11-01 |
| HMRC — Import goods into the UK | 2026-11-01 |