Unsurprisingly, the gambles evolving in today’s volatile trade background entice more sellers, particularly overseas, to offer Delivered Duty-Paid (DDP) shipments to U.S. buyers.
On the surface, it sounds blessedly simple: “We take care of everything, no extra duties, no hassle.”
But at Coppersmith Global Logistics, we know this approach often hides real dangers.
If you import goods via DDP, you could face unexpected fines, legal liability, and compliance headaches even though you are not listed as the official Importer of Record (IOR).
Here’s what every importer needs to know:
What Is DDP?
Delivered Duty Paid (DDP) means the seller agrees to deliver goods to the buyer’s door, cleared through customs and with all duties and taxes paid. The importer is not officially listed as the IOR — the seller (or their agent) handles customs clearance.
Why DDP Is Tempting Right Now
- Tariffs & Fees: Current U.S. tariffs are driving up costs, so sellers are offering DDP to lock in low, “all-in” pricing.
- “Too Good to Be True”: Overseas sellers often advertise DDP rates that seem to beat traditional landed cost models, but they may rely on misdeclaration or non-compliant practices to achieve those rates.
What Can Go Wrong
- Misdeclared Goods: Many DDP shipments are under-declared, misclassified, or undervalued. When Customs catches it, the importer may still be held responsible.
- Penalties & Audits: Even if you didn’t arrange the clearance, your company name or address may appear on shipping documents, inviting enforcement scrutiny.
- Cargo Seizure: If violations are found, CBP can seize the goods outright, costing you inventory and delaying orders.
- No U.S. IOR = No Protection: Without a U.S.-based IOR, Customs cannot pursue an accountable party, leaving the buyer (you) exposed.
What Importers Should Ask Sellers Offering DDP
- Who is listed as the Importer of Record?
- What tariff codes and declared values are being used?
- Can you provide complete customs entry documentation?
- Are duties truly paid, or is a workaround being used?
- Are you working with a licensed U.S. customs broker?
Why Coppersmith Recommends Caution
DDP can work — if done 100% legally and transparently. But in today’s market, many sellers cut corners:
- Misuse of de minimis exemptions
- Fake classifications
- Undervaluation to evade duties
At Coppersmith Global Logistics, we advise our clients to tread carefully:
- Maintain control of your customs clearance by being the IOR or appointing a trusted U.S. broker.
- Demand complete documentation transparency.
- Vet sellers thoroughly if they insist on DDP terms.
- Stay compliant — avoid short-term savings that risk long-term penalties.
Stay Compliant and Protected with Coppersmith
The temptation of DDP shipments is real, but so are the risks. With nearly 80 years of experience and a reputation built on integrity and trust, Coppersmith Global Logistics helps importers stay compliant in even the most challenging trade environments.
Contact us today to discuss your import strategy and how we can help you avoid DDP’s hidden traps.
