A DDP (Delivered Duty Paid) quote promises one number that covers everything until the goods reach your buyer's door. But what exactly sits inside that number? Understanding the components helps you compare quotes fairly and price your products correctly.
The landed cost formula
Landed cost = product cost + freight + insurance + duties & taxes + customs fees + delivery. Under DDP the seller pays all of it, so every line must be priced before you quote your customer.
1. Transport costs
- Pickup and export clearance in Vietnam
- Main freight (ocean or air) including fuel and peak-season surcharges
- Destination terminal handling, container drayage or airport transfer
- Final delivery to a business, residence, Amazon FBA or 3PL warehouse
2. Duties and tariffs
Import duty is calculated on the customs value using the HTS rate. In recent years the US has added extra tariffs on top of the normal rate for many origins, including Vietnam, and these have changed several times. A reliable DDP quote names the HTS code and the total duty percentage it assumes.
3. US Customs fees
| Fee | How it is charged |
|---|---|
| Merchandise Processing Fee (MPF) | 0.3464% of value, with an annual minimum and maximum |
| Harbor Maintenance Fee (HMF) | 0.125% of value, ocean shipments only |
| Customs bond | Single-entry bond per shipment, or an annual continuous bond |
| ISF filing | Per ocean shipment; late or missing filings risk heavy penalties |
| Customs brokerage | Per entry, plus extra lines and agency (FDA etc.) filings |
4. Costs that are often left out
- Customs examination fees if the container is selected for inspection
- Demurrage and detention when containers are not picked up or returned on time
- Residential delivery, liftgate or appointment fees
- Storage while waiting for documents or agency release
How to compare DDP quotes
- Check that each quote uses the same HTS code and duty rate.
- Ask whether inspection and storage are included or charged at cost.
- Confirm the delivery address type (commercial, residential, FBA).
- Look at transit time — a cheaper quote may use a slower routing.
We publish every component in our DDP quotes so you know exactly what you are paying for. See DDP/DDU to USA & Canada or ask for a landed-cost quote.