Incoterms Rules
DAP vs DDP: what is the difference
In both rules the seller delivers to the named place of destination and bears the risk until the goods arrive there, ready for unloading. The difference is import: under DAP the buyer clears the goods for import and pays duties and taxes, under DDP the seller does.
Side by side
| DAP Delivered at Place | DDP Delivered Duty Paid | |
|---|---|---|
| Transport | Any mode | Any mode |
| Export clearance | Seller | Seller |
| Import clearance | Buyer | Seller |
| Main carriage paid by | Seller | Seller |
| Insurance | Not required | Not required |
| Risk passes to the buyer | When the goods arrive at the named place, ready for unloading | When the goods arrive at the named place, ready for unloading |
Which one to choose
Choose DDP only if the seller can act as importer in the buyer's country, register for taxes there and pay the duties. Otherwise DAP is safer: the seller delivers to the door, and the buyer, who knows the local customs, clears the goods.