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 USA
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 → USA · Machinery · 100 units
| Cost line | Amount | Evidence |
|---|---|---|
| FOB goods value | $30,000 | User provided |
| International freight (FCL 40ft) | $6,700 | Estimated |
| Cargo insurance | $165 | Estimated |
| Customs duty (2.5% × CIF) | $922 | Rule-based |
| Additional measures | $9,216 | Rule-based |
| Import VAT / GST (0%) | $0 | Rule-based |
| Statutory fees | $174 | Rule-based |
| Clearance, port, inland, docs | $1,130 | Estimated |
| Estimated landed total | $48,307 | $483 / 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%–3.9% | None | $48,307 | $483 | Route file → |
| Audio equipment | 0%–4.9% | None | $28,736 | $287 | Route file → |
| Parts & components | 0%–3.9% | None | $31,146 | $62 | Route file → |
| Electronics | 0%–3.9% | None | $22,472 | $75 | Route file → |
| Furniture | 0%–8% | None | $37,972 | $380 | Route file → |
| Apparel | 16%–32% | None | $20,916 | $21 | Route file → |
| Auto parts | 0%–2.5% | None | $37,573 | $75 | Route file → |
| Chemicals | 0%–6.5% | None | $17,161 | $858 | Route file → |
| Vehicles | 2.5% | None | $63,283 | $21,094 | Route file → |
Category bands are planning ranges, not binding rates for a specific 8–10 digit line. Section 301 tariff (China-origin) is modelled separately at 25% on CIF.
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 | $180 | $280 | $420 | Single informal or formal entry with a routine broker fee. Bond, ISF and PGA reviews may add cost. |
| Port handling & terminal | $250 | $380 | $560 | Terminal handling, drayage and release at a major container port. |
| Inland delivery | $220 | $380 | $620 | One-way truck delivery from port to a nearby metropolitan warehouse. |
| Documentation & entry filing | $60 | $90 | $140 | Entry filing, ISF and release administration. |
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. A customs bond and an Importer Security Filing (ISF 10+2) are normally required for ocean entries. FDA, FCC, EPA, CPSC, USDA or DOT requirements may apply depending on the product and its intended use.
- 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. No federal import VAT is modelled here, but state and local taxes may still apply depending on the buyer and the goods.
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 States?
Start with the CIF customs value: FOB goods plus international freight plus insurance. Duty is assessed on CIF (customs value includes the price paid plus international freight and insurance to the US port). For machinery the planning band is 0%–3.9% with 2.5% as the base case, then no federal import VAT is added. The worked sample lands 100 units at $48,307 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 USA?
No federal import VAT is modelled for this destination. State and local sales tax may still apply depending on the goods and the buyer. 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 USA?
The model includes customs clearance & broker, port handling & terminal, inland delivery, documentation & entry filing. Base-case local charges total $1,130 for this sample. Ports in the model are Los Angeles / Long Beach, New York / Newark, Houston, Seattle / Tacoma.
How long does sea freight from China take?
Typical sea transit is 25–35 days port to port. Add clearance, documentation and inland delivery before you read that as a delivery date. The sample uses FCL 40ft and $6,700 of international freight.
What can change the number after a quote?
A customs bond and an Importer Security Filing (ISF 10+2) are normally required for ocean entries. FDA, FCC, EPA, CPSC, USDA or DOT requirements may apply depending on the product and its intended use. Used goods can face additional admissibility questions and may require cleaning certificates or prior authorisation. Section 301 duties can apply to China-origin goods by 8-digit HTS line; the category-level rate shown here is a planning estimate only. Section 301 tariff (China-origin) at 25% on CIF is modelled separately: List coverage and rate vary by 8-digit HTS line. Planning estimate only.
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 |
|---|---|
| USITC Harmonized Tariff Schedule | 2026-11-01 |
| CBP — Basic Importing and Exporting | 2026-11-01 |
| USTR — Section 301 investigations | 2026-11-01 |
| CBP — Fees and User Fees | 2026-11-01 |