DAP vs DDP: Which Incoterm Should You Quote? (With Cost Example)
· 4 min de lectura
The difference between DAP and DDP is who handles import: under DAP (Delivered at Place) the buyer clears the goods through customs and pays import duty and taxes, while under DDP (Delivered Duty Paid) the seller does both. In every other way the two Incoterms 2020 rules are the same: the seller pays transport to the named place, carries the risk until the goods arrive there ready for unloading, and the buyer unloads.
So the real question is not "which is better" but "can and should the seller act as the importer in the buyer's country?" This guide helps you decide, with a cost example and the traps that make DDP quotes lose money.
DAP vs DDP at a glance
| Step | DAP | DDP |
|---|---|---|
| Export clearance | Seller | Seller |
| Main transport to the named place | Seller | Seller |
| Risk until arrival, ready for unloading | Seller | Seller |
| Unloading at the named place | Buyer | Buyer |
| Import clearance (acting as importer) | Buyer | Seller |
| Import duty, VAT or GST, import fees | Buyer | Seller |
| Delays caused by import clearance | Buyer's problem | Seller's problem |
Risk passes at the same point under both rules: when the goods are at the named place, on the arriving vehicle, ready for unloading. Some guides say DDP risk lasts until the goods are inside the buyer's premises; under Incoterms 2020 that is only true if the buyer's premises are the named place. Our DAP and DDP pages show every step on a chart.
What the buyer pays under each rule: an example
A US manufacturer sells machine parts worth $20,000 to a buyer in Germany. Freight and insurance to the buyer's warehouse cost $1,800. Assume 2.7% EU duty and 19% German import VAT (check the real rates for your goods).
| Cost | DAP: who pays | DDP: who pays |
|---|---|---|
| Goods | Buyer pays $20,000 to seller | Included in the seller's price |
| Freight and insurance to the warehouse | Seller (built into the price) | Seller (built into the price) |
| Import duty, about $589 (2.7% of the CIF value of $21,800) | Buyer, to customs | Seller |
| Import VAT, about $4,254 (19% of value plus duty) | Buyer, usually reclaimed as input VAT | Seller, often not recoverable |
| Customs broker fees | Buyer | Seller |
The VAT line is where DDP quotes go wrong. A VAT registered buyer usually gets import VAT back on its return. A foreign seller who pays it under DDP often cannot reclaim it without registering for VAT in that country, so it becomes a pure cost of about 20% on top. EU countries charge duty on the CIF value, while the US charges duty on the price of the goods; our US tariff calculator shows how the US side works.
When should you choose DAP?
DAP is the safer default for most exporters:
- You cannot act as importer in the buyer's country. Many countries require the importer to be registered locally, with a tax number (an EORI number in the EU) and sometimes a fiscal representative.
- You do not know the exact duty and tax. Under DAP you never have to guess a rate.
- Your buyer is a business. Companies usually prefer to import themselves, because they recover the VAT or GST and control their own customs filings.
- The goods are regulated. Food, chemicals, medical and electrical goods may need import licences or approvals that only a local importer can obtain.
When does DDP make sense?
DDP is worth offering when:
- You sell to consumers or very small businesses who cannot or will not deal with customs. Many online stores ship DDP so the customer pays nothing on delivery.
- You already have a legal entity, VAT registration or an importer of record service in the buyer's country.
- The buyer insists on one landed price and you can price duty, tax and broker fees accurately.
If you quote DDP, get the HS or HTS code right first. The HTS code lookup covers US imports, and our guide on how to find the HS code for a product covers the six digits used everywhere.
DAP vs DDP vs DPU
DPU (Delivered at Place Unloaded) is the third delivered rule and the only one where the seller unloads.
| Rule | Who unloads | Who imports and pays duty |
|---|---|---|
| DAP | Buyer | Buyer |
| DPU | Seller | Buyer |
| DDP | Buyer | Seller |
Use DPU when the seller's carrier will unload at a terminal or site. Not sure which rule fits? The Incoterms chooser asks a few questions and suggests one.
Common mistakes with DAP and DDP
- Naming only a city. Write the full address ("DAP 12 Harbour Road, Hamburg, Incoterms 2020"), because risk passes there.
- Quoting DDP without checking VAT. Ask whether you can recover import VAT before you include it in your price.
- Using "DDP, VAT unpaid". It is a common variation, but it is not an official Incoterm. If you agree it, spell out in the contract exactly which taxes the buyer pays.
- Forgetting destination charges. Terminal handling at the destination that is part of the seller's freight contract stays with the seller under both rules unless the contract says otherwise.
- No clear plan for delays. Under DAP, storage and demurrage caused by slow import clearance fall on the buyer. Say so in the quote.
The International Chamber of Commerce publishes the official Incoterms 2020 rules; the wording there is what counts in a dispute.
Put the rule on your documents
Whichever rule you agree, write it with the named place and the version on every document: the quote, the proforma invoice and the final commercial invoice. For most sellers, DAP is the right answer; offer DDP only when you can legally import in the buyer's country and have priced every tax and fee.
Frequently asked questions
What is the main difference between DAP and DDP?
Under DAP the buyer clears import and pays duties and taxes. Under DDP the seller does both. Transport, risk and unloading are the same under the two rules.
Who pays import VAT under DDP?
The seller, as the importer. A foreign seller often cannot reclaim that VAT unless it is registered in the buyer's country, so it can become a real cost of the sale.
Where does risk pass under DAP and DDP?
Under both rules, risk passes when the goods are at the named place of destination, on the arriving vehicle, ready for unloading. The buyer then unloads.
Is DAP or DDP better for the seller?
DAP for most sellers, because they do not have to act as importer or guess duty and tax. DDP suits sellers who already import in the buyer's country and want to offer one landed price, often to consumers.
Is DDP VAT unpaid an Incoterm?
No. It is a common variation of DDP, not an official rule. If you agree it, write exactly which taxes the buyer pays in the contract.