How DDP Shipping Works from China to India: Complete Step-by-Step Breakdown
In international logistics, terms like DDP (Delivered Duty Paid) and DDU (Delivered Duty Unpaid) are frequently discussed, especially when shipping to markets with complex customs environments such as India.
Importing into India involves detailed compliance checks, certification requirements, and a multi-layered duty and tax structure, which makes cost predictability and clear documentation crucial. For this reason, many importers consider DDP as a way to simplify the shipping process and avoid unexpected clearance issues.
What is DDP Shipping?
Delivered Duty Paid (DDP) is a shipping term in international trade where the seller assumes full responsibility for delivering goods to the buyer's location. This includes covering all costs associated with transportation, taxes, duties, insurance, and delivery.
The key benefit of DDP shipping from China to India is complete cost transparency. The seller takes responsibility for paying all costs until goods reach the buyer's location in India. You simply receive goods at your door without handling customs clearance or additional fees.
Understanding DDP versus other shipping terms is essential for making informed decisions:
Key advantages of DDP shipping:
Complete price certainty before shipment
No surprise customs bills or hidden fees
Simplified logistics with single point of contact
Reduced administrative burden on your team
Faster delivery with professional customs handling
Key takeaway: DDP is ideal for businesses seeking predictable landed costs and streamlined shipping processes, particularly valuable when navigating India's complex customs environment.
Why DDP is Popular for China-India Trade
Complex Indian Customs Environment to Importers Want Predictability
India's customs environment presents unique challenges that make it one of the most complex import destinations in Asia:
India-specific compliance challenges:
BIS certification mandatory for 679+ product categories – As of March 2025, products ranging from electronics to machinery require Bureau of Indian Standards certification before import. New machinery regulations under Scheme X became effective August 28, 2025, covering approximately 50,000 types of machinery
Frequent anti-dumping duties on Chinese goods – India has imposed anti-dumping duties on numerous Chinese products including chemicals, aluminium foil, vacuum flasks, plastic machinery, and electronics. These duties can range from 15% to over 166% of CIF value
Complex duty structure – India simplified its tariff structure in 2025 to eight slabs, but rates still vary dramatically by product, from zero to over 100%
IEC registration requirement – The 10-digit Import Export Code from DGFT is mandatory for all commercial imports, with annual verification requirements between April-June
Product-specific certifications – FSSAI for food, WPC for wireless devices, CDSCO for pharmaceuticals, Legal Metrology for pre-packaged goods
DDP shipping from China to India addresses these challenges by providing predictability. The full landed cost, including duties, taxes, and clearance fees, is calculated and paid upfront by the seller, eliminating surprise expenses and making budgeting accurate.
DDP Reduces Administrative Burden
Handling international shipments traditionally requires coordinating multiple service providers:
What DDP eliminates:
Coordinating separate contracts for freight, customs, and delivery
Managing customs broker relationships and communications
Calculating and paying duties and taxes upon arrival
Resolving documentation discrepancies with customs officials
Tracking shipments across multiple handoffs
With DDP, importers avoid hidden port costs and customs delays. This simplification is especially beneficial for businesses with limited international trade experience.
Works Especially Well for SMEs, E-Commerce Sellers, Distributors
Ideal users of DDP shipping:
Small businesses without dedicated logistics departments
E-commerce sellers needing accurate landed costs for pricing
Startups testing the Indian market with initial shipments
Distributors importing diverse product ranges regularly
Foreign companies without Indian business entities
Key statement: The value of DDP shipping is not in "cheap freight" but in the predictability of landed cost and certainty during customs clearance, critical factors for business planning and cash flow management.
However, it is important to note that DDP is not a universal solution. While it reduces administrative workload, it also requires a high degree of accuracy in compliance assessment and customs declarations.
The responsibility for correct importation shifts heavily to the logistics provider, and the importer must ensure the provider has the proper credentials, compliance capability, and local clearance experience.
Two DDP Execution Models (This is Your Differentiation Section)
Understanding DDP execution models is crucial because they significantly impact costs, compliance, and tax optimization. Not all DDP services work the same way.
IOR-Based DDP (Importer of Record Handled by Forwarder)
Who should use this model:
Companies without an Import Export Code
Businesses making their first imports from China
Foreign entities without Indian registration
Importers with occasional, small-volume shipments
How it works: The freight forwarder acts as the official Importer of Record using their company credentials or a partner entity licensed for IOR services. All customs declarations, duty payments, and compliance responsibilities are handled using the IOR's registration.
Key advantages:
Zero setup requirements – no need to obtain IEC before importing
Fastest execution – immediate service availability
Minimal paperwork – freight forwarder handles all documentation
Ideal for testing – perfect for market entry or product validation
Important limitation: You cannot claim GST input tax credit because duties are paid under the IOR's credentials, not yours. For businesses reselling goods domestically, this effectively doubles GST burden.
Client IEC-Based DDP
Who should use this model:
Companies with established Indian operations
Regular importers with predictable volumes
Businesses focused on tax optimization
Enterprises requiring full compliance transparency
How it works: Your freight forwarder manages all operational aspects, documentation, customs filings, duty payment, and delivery, but uses your company's Import Export Code as the official importer.
Key advantages:
GST input credit available – offset import IGST against output GST on sales
Full compliance – all import records under your company name
Tax optimization – potential savings of 18-28% through credit claims
Long-term efficiency – builds your customs track record
Requirements:
Valid IEC from Directorate General of Foreign Trade
Basic documentation support for customs filings
Proper bookkeeping for import transactions
At Gerudo Logistics, we specialize in both DDP execution models for China-India trade. For startups and occasional importers, our IOR-based service provides instant market access with zero setup requirements, ideal when speed and simplicity are priorities. For established businesses focused on tax optimization, we facilitate Client IEC-based DDP, managing all operational complexity while ensuring you capture full GST input credit benefits. Our team guides you through IEC registration if needed and structures your DDP shipments for maximum tax efficiency.
What We Actually Do in DDP Shipping: Real Operational Breakdown Step-by-Step
DDP shipping from China to India involves coordinated stages managed by your freight forwarder to ensure seamless movement from the supplier to your door.
Step 1: HS Code Verification & Compliance Check
What happens:
Verify correct Harmonized System classification for all products
Confirm compliance with Chinese export regulations
Check Indian import requirements and restrictions
Identify required certifications (BIS, FSSAI, etc.)
Validate declared values align with market prices
Why it matters: Proper classification determines duty rates and clearance requirements. Errors here cause delays, penalties, and potential seizure of goods.
Step 2: Export Handling & Documentation in China
Services provided:
Coordinate pickup from supplier location anywhere in China
Prepare all export documentation (commercial invoice, packing list, certificates)
Submit declarations to Chinese customs electronically
Obtain export clearance and release of cargo
Arrange transportation to port or airport
Key documents prepared:
Commercial invoice with accurate values and descriptions
Packing list detailing contents and packaging
Certificate of Origin (where required)
Product-specific certificates (quality, inspection, etc.)
Step 3: Mainline Transportation (Air or Sea Freight)
Want to know the cheapest shipping method to India? Explore our Complete Guide Shipping from China to India.
Sea Freight:
Transit time: 15-30 days ocean voyage
Full Container Load (FCL) or Less than Container Load (LCL) options
Major routes: Shanghai/Ningbo/Shenzhen → JNPT/Chennai/Mundra
Most economical for larger shipments
Air Freight:
Transit time: 1-3 days flight time
Charged per kilogram (actual or volumetric weight)
Major routes: Shanghai/Guangzhou/Beijing → Delhi/Mumbai/Bangalore
Ideal for time-sensitive or high-value goods
Insurance coverage: Marine or air cargo insurance protects against loss or damage during transit. Recommended for all shipments under DDP terms.
Step 4: Customs Valuation & Duty Settlement in India
Customs clearance process:
File Bill of Entry through Indian Customs EDI System
Customs assesses value and calculates duties
Payment of Basic Customs Duty (varies by HS code)
Payment of any applicable anti-dumping duties – For affected Chinese products
Payment of Integrated GST (5-28% depending on product)
Payment of 1% customs handling fee
Release of goods from customs custody
Current duty structure (2025): India has simplified its tariff structure to eight slabs including zero rate. Average customs duty rate is approximately 10.66%, though rates vary significantly by product category, from zero on certain raw materials to over 100% on luxury items.
Special considerations for China-India imports:
Anti-dumping duties may apply to your products. India has imposed duties on chemicals (up to $2,017/tonne), aluminium foil (up to $873/tonne), plastic machinery (27-63%), electronics components, and many others
BIS compliance verification – Customs will check for valid BIS certification for regulated products
Valuation scrutiny – Indian customs carefully examines declared values on Chinese imports due to concerns about under-valuation
What's included in DDP: Under DDP terms, your freight forwarder pays all these duties and taxes on your behalf. These costs are incorporated into your quoted price, eliminating surprise charges.
Step 5: Final-Mile Delivery to Your Location
Delivery services:
Trucking from port/airport to your specified address
Delivery to warehouses, retail locations, or fulfillment centers
Coverage throughout India including major metros and inland locations
Real-time tracking and delivery confirmation
Typical timeline: 2-5 days depending on distance
Delivery timeline by location:
Major metros (Mumbai, Delhi, Bangalore): 2-3 days
Tier 2 cities: 3-4 days
Remote or inland locations: 4-5 days
Frequently Asked Questions for DDP Shipping to India
1. What is the difference between DDP and DAP?
DDP includes all duties, taxes, and customs clearance handled by the seller, while DAP excludes duties and taxes, leaving them to be paid by the buyer upon arrival. DDP provides complete cost certainty, whereas DAP requires you to handle customs and pay import charges.
2. Can DDP be used for small shipments?
Yes, DDP can be used for both small and large shipments. For small volumes, IOR-based DDP offers the simplest solution requiring zero setup. However, shipping costs per unit tend to be higher for smaller shipments compared to consolidated larger loads.
3. How do I track my DDP shipment?
Your freight forwarder provides real-time tracking at key milestones, pickup confirmation, export clearance, departure, arrival, customs clearance, and delivery. You receive tracking numbers for sea freight (Bill of Lading) or air freight (Airway Bill) that can be checked on carrier websites.
4. Do I need an IEC for DDP shipping?
If you're using IOR-based DDP, you don't need an IEC, the freight forwarder acts as Importer of Record. However, if you want to use Client IEC-based DDP to claim GST input credit, you'll need to obtain an IEC from the Directorate General of Foreign Trade.
5. What happens if my goods are stuck at customs?
Customs issues are typically resolved by your DDP provider since they handle clearance. Common causes include documentation errors, valuation disputes, or random inspections. Ensuring all paperwork is accurate in advance helps avoid delays. Your forwarder will work to clear goods quickly and keep you informed.
6. Are there hidden fees with DDP shipping?
While DDP includes most costs, it's essential to clarify all charges upfront with your freight forwarder. Potential additional fees include customs inspection charges (if selected), storage fees (if you can't take delivery immediately), or services not specified in the original quote. Request a detailed breakdown before booking.
7. Which is better for my business, IOR or Client IEC model?
Choose IOR-based DDP if you're making occasional shipments, don't have an IEC, or want zero paperwork involvement. Choose Client IEC-based DDP if you import regularly, want to claim GST input credit, and need full compliance transparency. The tax savings from GST credits typically make Client IEC model more economical for established, regular importers.
Conclusion: Making DDP Shipping Work for Your Business
DDP shipping from China to India simplifies international logistics by consolidating all stages under one comprehensive service provider. This integrated approach delivers several critical benefits:
Whether you're a small e-commerce seller sourcing products for resale, a manufacturer importing components for production, or a distributor bringing in diverse product ranges, DDP solutions are available to meet your specific requirements.
International shipping doesn't have to be complicated. With the right knowledge and partners, you can confidently import goods from China to India, knowing your cargo will arrive safely, legally, and on schedule. DDP shipping removes the guesswork from international trade, allowing you to focus on growing your business rather than managing logistics complexities.
Looking for reliable DDP shipping services from China to India? Gerudo Logistics offers both IOR-based and Client IEC-based DDP solutions tailored to your business needs. Contact us today for a detailed quote and experience hassle-free international shipping.
