DAP vs DDP
Under both DAP (Delivered at Place) and DDP (Delivered Duty Paid) the seller delivers to the named place at destination and carries the risk until then. The difference is import clearance: under DAP the buyer clears customs and pays duties and taxes; under DDP the seller does.
The one difference that matters
Everything up to the buyer's door is the same: the seller clears export, pays the main carriage and carries the risk to the named place. At the border, DAP hands the job to the buyer; DDP keeps it with the seller, who must act as importer, pay duties and import VAT or GST, and meet any import rules.
| Job | DAP | DDP |
|---|---|---|
| Export clearance | Seller | Seller |
| Loading at origin | Seller | Seller |
| Main carriage | Seller | Seller |
| Insurance | No obligation | No obligation |
| Unloading at destination | Buyer | Buyer |
| Import clearance and duties | Buyer | Seller, incl. duties and taxes |
Risks of DDP for the seller
- You may need a tax registration or a non-resident importer status in the buyer's country.
- Import VAT paid by you may not be recoverable, making DDP more expensive than it looks.
- Duty depends on the HS code and origin; a misclassification is your cost and your liability.
- Goods held at customs are your problem until released.
Risks of DAP for the buyer
- Duties and taxes are an extra bill on arrival; work out the landed cost before ordering.
- If the buyer is slow to clear, storage and demurrage charges build up; the contract should say who pays them.
Which to choose
| Situation | Better choice |
|---|---|
| B2B buyer with its own customs broker | DAP |
| E-commerce delivery to consumers | DDP (often through a carrier's duties-paid service) |
| Seller not registered in the destination country | DAP |
| Buyer wants one all-in delivered price | DDP, if the seller can import |
| Seller must also unload at the site | DPU (see DPU) |
Sources
Tools used in this guide
Related guides
Common questions
What is the difference between DAP and DDP?
Under DDP the seller clears the goods for import and pays duties and taxes; under DAP the buyer does. Delivery point and transit risk are the same.
Is DDP more expensive than DAP?
The seller's price is higher because it includes duties, taxes and clearance; overall cost is similar, but unrecoverable import VAT can make DDP dearer.
Who pays import VAT under DDP?
The seller, as importer. Whether it can reclaim it depends on its registration in the destination country.
Who unloads the goods under DAP and DDP?
The buyer, under both. Use DPU if the seller should unload.