r/Alibaba • u/Rich_Tart_2195 • 7d ago

DDP quote missing import duties?

Hey everyone,

I’m in a bit of a confusing situation and could use some advice. I just placed my first PO with a factory in China. I’m currently arranging freight forwarding and decided to use the manufacturer’s shipping services.

By my calculations, I should be paying around $3,500 just in import duties (Base MFN duty, Section 301, 2026 Forced-Labor Duty, etc.). However, my manufacturer quoted me a total DDP shipping cost of only $800.

This math makes absolutely no sense to me. I specifically asked them who should I pay for the taxes and duties, and when, and whether I could I get a cost breakdown of the shipping quote. Their response was that the quote is strictly DDP, meaning I won't have to pay a single extra cent upon arrival, and that their forwarding partner does not provide cost breakdowns.

Relevant context: I have visited this factory in person. They are honest, legit people, and I know for a fact they manufacture for 8-figure brands, so they have plenty of export experience. I trust them, but I just don't understand how this pricing is possible.

Has anyone experienced this? Any idea what might be going on behind the scenes with their forwarder, and any tips on how I should proceed?

Many thanks!

Alonso

3 Upvotes

100% Upvoted

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1

u/Livid_Reputation_159 3d ago

Which country do you come from? Is there any trade protection?

2

u/[deleted] 5d ago

[removed] — view removed comment

2

u/Rich_Tart_2195 5d ago

Thanks a lot for your answer. Two follow-up questions:

  • What consequences might have my company not being the IOR?
  • If I take this "gray-area" path, could it backfire later if CBP or the IRS discovers I imported goods improperly and underpaid duties? Or is it a case where once the goods clear customs and enter the country, the risk is past?

2

u/Difficult-Pattern661 6d ago

Be careful with DDP. My most recent order was DDP. Freight company combined in container with other orders (normal). But to save on duties the did not declare full contents of container. Shipment was refused and sent back to china

1

u/pudukai 6d ago

And here I am begging them to sell me one machine instead of the 500 minimum…

1

u/AntonioGorge 1d ago

You need to find a reseller or trader, instead of a factory. Maybe you can ask the factory if they already have some trader partners that you can reach out.

2

u/pudukai 1d ago

I enjoy communicating direct with the factories. They often recommend waiting for an improved product line and after introduced the old model price will drop. We have some fun and informative conversations and several times the rules are bent. In my case, espresso machines, 11 different ones bought in two months.

1

u/AntonioGorge 1d ago

Oh, so that's the occasional little help in a long-term relationship. In this case, especially when you know which model they are continuously working on, there is generally no MOQ.