DAP vs DDP: who pays what

DAP is Delivered at Place. DDP is Delivered Duty Paid. Incoterms 2020.

The difference that matters

Full cost split

Cost blockDAPDDP
Export clearanceSellerSeller
Carriage to port / terminalSellerSeller
Loading onto main carriageSellerSeller
Main carriage (freight)SellerSeller
InsuranceNeither obligedNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerSeller
Duties and import taxesBuyerSeller
Risk passesAt the named destination, with the goods still on the arriving vehicle.At the named destination, ready for unloading, after import clearance.
Transport modeAny modeAny mode

What people get wrong

DAP

If the buyer is slow to clear customs, the goods sit and the demurrage lands on the seller, who still controls the carriage contract.

DDP

Many countries will not let a non-resident seller act as importer of record, and unrecoverable import VAT quietly becomes a cost.

Questions

What is the main difference between DAP and DDP?
They split 2 cost blocks differently. import clearance falls to the buyer under DAP and the seller under DDP; duties and import taxes falls to the buyer under DAP and the seller under DDP.
Where does risk pass under DAP?
At the named destination, with the goods still on the arriving vehicle.
Where does risk pass under DDP?
At the named destination, ready for unloading, after import clearance.
Can DAP and DDP both be used for container shipments?
Yes. Both work for any mode of transport, including containers, air and road.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs DAPCFR vs DDPCIF vs DAPCIF vs DDPCIP vs DAPCIP vs DDPCPT vs DAPCPT vs DDP

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.