LDP / DDP

URGENT;  U.S. CUSTOMS AGGREESIVELY INVESTIGATING FALSE DDP/ MODIFIED DDP PROGRAMS AND TARGETING ALL PARTICIPANTS INCLUDING ULTIMATE CONSIGNEE(S)  

Published by U.S. Customs, 06 November 2025  

In our commitment to bring timely information to our customers concerning Tariff and trade issues, focusing on CBP evolving CBP initiatives.  

To this end we want to alert the following initiatives CBP is aggressively going after. U.S. Customs is now taking a much deeper and more aggressive look into DDP (Delivery duty Paid shipments.   Some factories are incorrectly claiming that DDP means “Duty-free.”   This is not accurate.  

Certain factories and /or freight forwarders have been submitting false or undervalued invoices to reduce duties.  This constitutes under 19CFR, and because it is become more common Customs is seeking out those companies involved and assessing heavy fines and penalties. CBP is no longer stopping at the factory, officers are now routinely requesting purchase orders and invoices from both the importer of record and the ultimate consignee.  

Buying on a DDP/modified DDP basis does NOT insulate the buyer from liability.   Customs is investigating the buyer’s involvement in restructuring transactions. 

Repeat violations may trigger civil and criminal investigations, substantial fines, and even potential jail time. 

***  THERE ARE NO SHORTCUTS, IT IS NOT WORTH THE RISK  

If you have further questions or concerns, please send email or phone us for further information.