Last month, my supplier dangled this DDP quote that was literally 50 % cheaper than my usual FOB flow, so of course I jumped. Then a mentor flagged the real kicker: their forwarder planned to list ME as the importer of record (IOR). That means if customs later scream “undervaluation!” the paper trail leads straight back to my brand, even if the paperwork looks perfect on day one. Turns out DDP isn’t evil, until it starts being misused.
A lot of factories in China chase the absolute lowest A to B shipping rate, totally unaware that a low price often comes with a high misdeclaration risk. I dodged a bullet here, but wow... lesson learned! Stuck at PDX customs again. Ugh.
- Always confirm who will be named IOR before signing any DDP deal, supplier or FF, not you.
- Sudden price drops (> 40 %) are a red flag for possible undervaluation/mis‑declaration.
Anyone else juggling DDP offers lately? How are you shifting the risk without trashing lead times?
JereMeeeCarter
This is definitely critical. Ensuring the forwarder's name is on customs paperwork is key. But considering the high tariffs now, I'm curious if the actual consignee decides to abandon the shipment or can't cover the duties, how exactly does the forwarder handle that burden?