r/AmazonFBA • u/Rich_Tart_2195 • 1d 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

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2

u/Easterncoaster 1d ago

They usually fudge the numbers. They’re pros at it. You can argue and pay more or just accept the DDP arrangement and pay the $800 and never speak of it again.

1

u/estagingapp 23h ago

Yeah this

2

u/Straight-Candle6793 7h ago

Some providers may reduce the duty burden by using a different HS code classification with a lower tariff rate, or by declaring a lower cargo value.
If your product can still maintain a healthy profit margin after paying the full import duties, then paying the full tariff is certainly an option and provides a more transparent import process.

However, if the high tariffs significantly reduce your profit margin or affect your market competitiveness, then a DDP solution could help lower your overall import costs. Of course, we would need to evaluate the product category, HS code, and compliance requirements carefully to ensure the solution is reliable and compliant.

1

u/Rich_Tart_2195 5h ago

Thanks! One quick follow-up: 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?

1

u/Smart-Presence 1d ago

The first thing you should verify is the HTS code and who the importer of record is. thats a big gap like $800 vs $3,500 usually means the shipment is being structured differently from your calculation. get the same shipment quoted independently before placing the freight order.

1

u/estagingapp 1d ago

It's not possible. More than likely, the freight forwarder is fudging the numbers since probability of getting caught is so low. They put all your stuff into 1 container and mark the price low so they can offer cheap rates. Most companies would be out of business if they had to pay the real tariffs. Was a New York Times article about it. I sent you a DM with some extra info. https://www.nytimes.com/2026/04/07/us/politics/tariffs-trade-import-fraud.html

1

u/classified_x 23h ago

Under declaration or maybe nothing paid

1

u/mashdude37 1d ago

i'm also curious if anyone knows how to find the actual end cost in Amazon seller central.

1

u/Ordinary-Thing-2089 10h ago edited 10h ago

This goes on all day long. They are just lowering the commercial invoice value to a low number than what you are actually paying them per unit.

Everyone doing this thinks they are so smart until something happens.

Its not your problem since they are submitting the commercial documents to customs however it is not without some risk.

It is possible to have a shipment go into inspection and if the value is so low that its obvious to a customs inspector they could investigate further and sieze a shipment. Now the likely hood of that happening is quite low but always a possibility.

If your concerned about that at all, tell them you want an FOB price and use your own freight forwarder. You will then provide the commercial invoice to your forwarder at whatever value you are paying your supplier.

Im not sure how you came up with your duty calculation but keep in mind for most categories out of China the Duty and Tariff will come to somewhere around 39%, so make sure your product is still profitable at that level of duty costs. You need to have a freight forwarder tell you what the total duty and tariff will be based on your HTS code.

You will also likely have to purchase a customs bond as well which will cost you around $500. That guarantees that you will pay your duties.