Watch: DDP vs DAP Incoterms Explained
Watch this short video to understand the main difference between DDP and DAP, particularly who handles import clearance and pays import duties and taxes.
Quick Overview
Under both DAP and DDP, the seller arranges transportation to the named destination and bears the risk until the goods are placed at the buyer’s disposal, ready for unloading.
The key difference concerns import procedures. Under DAP, the buyer handles import clearance and import charges. Under DDP, those responsibilities generally belong to the seller.
Video Transcript
“DDP or DAP—which Incoterm fits your shipment?
Under both Incoterms, the seller arranges transportation to the named destination and bears the risk until the goods are placed at the buyer’s disposal, ready for unloading.
The key difference is import responsibility:
DAP: The buyer completes import customs clearance and pays import duties, VAT and other import taxes.
DDP: The seller completes import customs clearance and pays import duties and taxes.
Under both terms, the buyer normally handles unloading at the named destination.
DDP gives the seller greater responsibility, but it may not be legally or operationally practical in every destination. Before agreeing to DDP, confirm that the seller can act as importer of record or otherwise complete the required import procedures.
Always specify the exact named destination in the sales contract.”
Compare DDP and DAP Responsibilities
This video provides a short introduction. Read the complete DDP vs DAP comparison for a detailed explanation of transportation, customs clearance, duties, taxes, unloading and risk transfer.
You can also read the individual guides to DAP and DDP, or explore all Incoterms.
