# DAP vs DDP

Under both <b>DAP (Delivered at Place)</b> and <b>DDP (Delivered Duty Paid)</b> the seller delivers to the named place at destination and carries the risk until then. The difference is import clearance: <b>under DAP the buyer clears customs and pays duties and taxes; under DDP the seller does</b>.

## Key takeaways

- Same delivery point and transit risk; only import clearance and duties differ.
- DDP makes the seller the importer: it needs to be able to clear customs and pay or recover import VAT.
- DAP is safer for most sellers; DDP suits e-commerce and buyers wanting an all-in price.
- Unloading at destination is the buyer's job under both.

## 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](https://cartonmath.com/guides/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 ) |


[Read the DDP rule](https://cartonmath.com/incoterms/ddp/): Seller obligations under Incoterms 2020.

## Sources

- [International Chamber of Commerce: Incoterms® rules](https://iccwbo.org/business-solutions/incoterms-rules/)

## FAQ

**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.

Source page: https://cartonmath.com/guides/dap-vs-ddp/
Updated: 2026-10-06
Publisher: CartonMath (https://cartonmath.com)