DAP vs DDP (Incoterms 2020)
The only difference is import clearance. Under DDP the seller also clears the goods for import and pays the duties and taxes; under DAP those stay with the buyer.
Side by side
| DAP · Delivered at Place | DDP · Delivered Duty Paid | |
|---|---|---|
| Transport | Any mode | Any mode |
| Delivery and risk pass to the buyer | At the named destination, ready for unloading | At the named destination, ready for unloading |
| Main freight paid by | Seller | Seller |
| Insurance | Not required | Not required |
| Export clearance | Seller | Seller |
| Import clearance and duties Different | Buyer | Seller |
| Unloading at destination | Buyer | Buyer |
Where risk and costs pass from the seller to the buyer
SellerBuyer
Origin → Main carriage → Destination. Simplified diagram: the exact point is the named place written after the rule. The costs line shows who pays the main carriage and, under DDP, the import duties and taxes.
Seller's obligations compared (A1–A10)
| DAP | DDP | |
|---|---|---|
| A1/B1 General obligations | Provide the goods and the commercial invoice as the contract requires, plus any other proof of conformity it asks for. Documents may be paper or electronic if agreed or customary. | Provide the goods and the commercial invoice as the contract requires, plus any other proof of conformity it asks for. Documents may be paper or electronic if agreed or customary. |
| A2/B2 Delivery and taking delivery | Deliver by placing the goods at the buyer's disposal on the arriving means of transport, ready for unloading, at the agreed point, if any, at the named place of destination, on the agreed date or within the agreed period. | Deliver by placing the goods, cleared for import, at the buyer's disposal on the arriving means of transport, ready for unloading, at the agreed point at the named place of destination. |
| A4/B4 Carriage | Contract or arrange, at its own cost, the carriage to the named place of destination, or to the agreed point there; under Incoterms 2020 it may also use its own transport. | Contract or arrange, at its own cost, the carriage to the named place of destination; it may also use its own transport. |
| A7/B7 Export and import clearance | Carry out and pay for export clearance and the formalities of any transit country before import. Where applicable, help the buyer, at its request, risk and cost, with documents and information for import clearance. | Carry out and pay for export, transit and import clearance, including import licences, security clearances, pre-shipment inspections, and import duties and taxes such as VAT; in practice the seller must be able to act as importer, or use someone who can. |
| A9/B9 Allocation of costs | Pay all costs until delivery, the transport to destination, export and transit clearance, and unloading only if its carriage contract includes it. | Pay all costs until delivery, the transport, export, transit and import clearance, and all import duties and taxes; unloading only if its carriage contract includes it. |
When to use each rule
DAP
DAP suits sellers who want to quote a delivered price while leaving import formalities to the buyer, who knows its own customs. It is common for trucking, courier and door-to-door container deliveries.
DDP
DDP suits sellers who know the import country well and can act as importer of record there, such as e-commerce sellers using a local agent. For most small exporters, DAP is safer.
Compare other rules
A plain-language summary of Incoterms® 2020 for everyday use. The full rules are published by the International Chamber of Commerce (ICC), and your contract wording decides. Incoterms® is a registered trademark of the ICC.
Guides on this topic
Common questions
Who pays import duties under DAP?
The buyer. Under DAP the seller delivers to the destination, but import clearance, duties and taxes are the buyer's responsibility.
Does DDP include import VAT?
Yes, unless the contract excludes it. Under DDP the seller pays import duties and taxes, including VAT or GST. The parties can agree otherwise in writing, for example "DDP, VAT unpaid".
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