Who Clears US Customs and Pays the Duty Under DDP?

Under DDP (Delivered Duty Paid), the seller arranges US customs clearance and pays the duty — normally through a licensed customs broker — so the buyer never hires a broker or receives a duty bill. What that work includes, whose name sits on the customs record and how the duty money moves is what this guide explains.

Chinese suppliers often quote the same arrangement as “double clearance, duty paid” — both clearances plus the duty inside one price. The words change; the mechanics do not.

What the Seller Handles in a DDP Shipment

DDP moves two sets of customs work onto the seller’s side of the transaction: export clearance in China and import clearance in the United States. The seller does not usually do the filing itself. A freight forwarder coordinates the move, and the entry is filed by a customs broker licensed by US Customs and Border Protection (CBP) — a broker who may sit inside the forwarder or act as a partner.

On the US side, the work that lands on the seller’s side of a DDP move is:

• The release filing and, for ocean freight, the ISF. Cargo release is requested before arrival, and an Importer Security Filing is transmitted for ocean shipments.
• The entry summary. CBP Form 7501 declares the HTS classification, the entered value and the country of origin for each item on the invoice. It must be filed, with estimated duties deposited, within 10 working days after the goods are entered (CBP, Entry Summary and Post Release Processes).
• The duty and the fees. Duty is assessed on the classification, the declared value and the measures in force on the date of entry, alongside the Merchandise Processing Fee and, for ocean cargo, the Harbor Maintenance Fee.
• Exams and release. If CBP selects the container for an exam, the seller’s side manages the appointment, the move and the cost.
• Delivery to the door. Once released, the goods move to the consignee — the only part visible from outside.

Whose Name Is on the Customs Record?

This is the part buyers ask about least. Every entry has to name an importer of record (IOR) — the party that takes legal responsibility for the declaration — and that party needs a customs bond. Under DDP there are two workable arrangements:

• Your entity as the importer of record. The forwarder files the entry on your behalf under a power of attorney, using your tax ID and your bond. The customs record, the duty and the proof of import sit in your name.
• A service-provided importer of record. The forwarder or a partner provides the IOR. Common for first-time importers and for sellers who have no US entity. Convenient, but the import record is not in your name, and the entry’s legal obligations rest with the entity that is named.

Since 18 September 2026 the difference has sharpened. CBP is reviewing the information behind every importer of record number, and under the notice published on 19 August 2026 it can void a number outright when the data on CBP Form 5106 is incomplete or inaccurate — and a voided number cannot be used for any purpose, including making an entry (90 FR 53627). A registered agent’s address, a broker’s office, a forwarder’s address or a PO box no longer passes as an importer’s physical address. The practical question for a buyer is therefore not “is clearance included?” but “whose number is being used, and is the information behind it real?”

How the Duty Is Paid — and Why the First Number Is an Estimate

The duty paid at import is a deposit. It is calculated at the moment of entry, deposited with the entry summary, and then checked. CBP liquidates the entry — normally within 314 days — and that liquidation fixes the final duty: an amount owed, or an amount refunded. Corrections to a filed entry run through a Post Summary Correction before liquidation, and disagreements after it run through a protest.

In a DDP deal the seller carries that adjustment, because the duty is inside the price. That is why a credible DDP quote separates duty from freight and states the value it was calculated on; a blended figure that never mentions value hides the variable that matters most.

What Decides the Duty in Your Quote

Four variables set the duty and the total in any DDP quote:

• The product and its HTS classification — the rate follows the code, and a mixture of materials or a bundled item can fall differently than expected.
• The measures in force on the date of entry — ordinary tariffs, Section 301 and Section 232 all sit at different layers, and they change.
• The declared value — duty is charged on the value the entry declares, not on the price you paid for transport.
• The freight itself — the sea or air cost that gets the goods to the port of entry, with its seasonal swings.

Because those four move independently, every shipment is different and any figure quoted before the goods are known is an indication rather than a price. A breakdown of them tells you more about a quote than the total does.

What Stays With the Buyer, Even Under DDP

DDP transfers the customs work. It does not transfer everything:

• Product compliance. Clearance is not approval. Requirements such as FDA registration, FCC equipment authorization, CPSC rules or state labelling obligations apply to the goods themselves, and a cleared entry does not satisfy them.
• The accuracy of the commercial record. The declaration is built from your invoice and product details, and whoever is named as importer of record answers for it.
• The importer-of-record decision. Whether the entry runs on your number or a service number is a business decision with consequences for your import history, not a detail to leave open.
• Receiving conditions. Appointments, liftgate, dock access and storage depend on the address you give.

Frequently Asked Questions

Does DDP include customs clearance and the duty?

Yes. A genuine DDP quote covers both clearances, the duty and delivery. If a quote leaves clearance or duty to you, it is not DDP — it is closer to DAP, or to FOB with a door delivery attached.

Who is the importer of record in a DDP shipment?

Whoever the entry names. It can be your own entity, using your tax ID and bond, or a service-provided importer of record. Both are used in practice; the difference is whose name the import record and the legal responsibility sit in.

Do I need an EIN or a customs bond to buy DDP?

Not always. If the entry runs on a service-provided importer of record, you do not need either. If you want the customs record in your own name — useful for resale documentation and for building an import history — you need a tax ID and a customs bond.

What happens if CBP bills more duty after the goods arrive?

Liquidation can raise or lower the amount; in a DDP arrangement the seller absorbs that within the price. Because it settles months after delivery, agree in writing who carries a liquidation difference, and up to what limit.

Can I get the customs documents after delivery?

Ask for the entry summary, CBP Form 7501, which shows the classification, entered value, duty and importer of record. If the entry is in your name, it is your import record; if it is in a service name, you have no import history of your own.

The mechanics above sit inside the wider picture: what a full DDP service actually includes and how the fees break down, what CBP’s importer-of-record accuracy enforcement means for the entity on the entry, and how the arrangement differs from the DDP definition itself. For the clearance half in practice, see US customs clearance.