For Amazon FBA sellers shipping from China to North America or Europe, the choice between DDP (Delivered Duty Paid) and DDU (Delivered Duty Unpaid) can quietly decide whether a shipment is profitable, breakeven, or a hidden loss. Over the past year we have seen a noticeable shift in how Chinese sellers structure their FBA freight contracts, driven by tariff volatility and tighter customs scrutiny. Here is a practical breakdown of when to use each, and the traps we see most often.

What DDP and DDU actually cover

Under DDP, the freight forwarder takes responsibility all the way to the Amazon fulfillment center, including ocean or air freight, US customs clearance, import duties, MPF and HMF fees, last-mile trucking, and FBA appointment booking. The seller pays a single price per kilogram or per cubic meter and walks away from customs paperwork. Under DDU, the forwarder delivers to a US port or airport and the seller (or their US customs broker) handles entry filing, duty payment, and onward delivery.

When DDP makes sense

DDP is usually the right choice for sellers who:

• Do not have a US-registered entity or EIN and cannot legally act as Importer of Record.
• Ship low-to-mid value goods where duty risk is small and predictable.
• Want one invoice, one contact, one delivery deadline — the operational simplicity is genuinely valuable for small teams.
• Are shipping HS codes their forwarder has cleared dozens of times before.

The downside is transparency. A bundled DDP quote hides where the margin sits. If your forwarder marks duties up by 15-20% (which is common), you may be paying more than the duty itself.

When DDU makes sense

DDU starts to win for sellers who:

• Have a US LLC or corporation, an EIN, and a continuous customs bond.
• Ship high-value SKUs where a 5-10% duty difference moves real money.
• Want to take advantage of Section 321 (de minimis) for sub-$800 shipments, or want to apply for duty refunds and drawback later.
• Have a relationship with a US customs broker who can negotiate classifications.

Three traps we see all the time

1. Undervaluation on the commercial invoice. Some DDP providers quote aggressive rates by understating cargo value to lower duty. If CBP audits and reclassifies, the duty difference plus penalties fall back on the seller — and Amazon will hold inventory hostage during disputes.

2. HS code shortcuts. Misclassifying a product to dodge a higher tariff line is the single most common compliance issue we see in 2026. Section 301 tariffs on China-origin goods make this tempting; CBP’s data analytics make it dangerous.

3. No proof of duty payment. Under DDP you have no Entry Summary (CBP Form 7501) in your name. If you later want to reclaim duty under a refund program, or prove compliance to Amazon, you cannot. Always ask your forwarder for the 7501 even if they paid the duty.

Our recommendation

For sellers shipping under 20 CBM per month or starting out, DDP delivered by an experienced FBA freight specialist is almost always the right call — the time saved on paperwork is worth more than the small markup. Once you cross roughly 50 CBM monthly, or your duty exposure climbs above $5,000 per shipment, set up a US entity and switch to DDU with a dedicated broker. The break-even comes faster than most sellers expect.

If you would like Mile Global Logistics to model both options against your actual SKU mix and shipping cadence, request a quote and we will send a side-by-side comparison within one business day.