What is the difference between DAP and DDP?
Updated: 2026-10-14
Short answer
Under DAP (Delivered at Place), the seller arranges and bears the risk of transport to the named destination, but the buyer generally handles import clearance and pays import duties and taxes. Under DDP (Delivered Duty Paid), the seller also takes responsibility for import clearance and applicable import duties and taxes, where legally and practically possible.
What Is DAP?
DAP stands for Delivered at Place. The seller arranges transportation and bears the risk of bringing the goods to the agreed destination. Delivery occurs when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading. The buyer generally unloads the shipment and handles import clearance, including applicable import duties and taxes.
What Is DDP?
DDP stands for Delivered Duty Paid. The seller takes responsibility for delivering the goods to the named destination, completing export and import clearance, and paying applicable import duties and taxes. Delivery occurs with the goods ready for unloading, so unloading is generally the buyer's responsibility unless the contract separately provides otherwise. DDP places a high level of responsibility on the seller.
Key Differences Between DAP and DDP
Both DAP and DDP place the main carriage and destination transport responsibility on the seller, but they differ in import formalities and charges. With DAP, the buyer usually acts as the importer and pays the import duties and taxes. With DDP, the seller is responsible for import clearance and the related duties and taxes. Neither rule automatically requires the seller to unload the goods at destination.
How to Choose Between DAP and DDP
DAP may be suitable when the buyer can handle local customs clearance and taxes. DDP may be useful when the seller can legally and practically manage import formalities in the destination country and wants to offer a more inclusive delivered price. Before agreeing to DDP, confirm local importer registration, tax, customs, and product compliance requirements. Specify the destination as precisely as possible. For the official rule explanations, visit https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/.