DAP vs DDP – who pays for what?
DAP is Delivered at Place and DDP is Delivered Duty Paid. We compare who pays for transport, customs clearance and duty, and where risk passes to the buyer.
Key differences
Under DDP, the seller also covers import clearance as well as import duty and VAT. Under DAP, the buyer pays for this instead. Under both rules, risk passes to the buyer at the place of destination, before unloading.
- Import clearance
- DAPBuyerDDPSeller
- Import duty and VAT
- DAPBuyerDDPSeller
Full cost breakdown
| Cost | DAP | DDP |
|---|---|---|
| Export clearance | Seller | Seller |
| Transport to the port or terminal | Seller | Seller |
| Loading for main carriage | Seller | Seller |
| Main carriage (freight) | Seller | Seller |
| Insurance | No obligation | No obligation |
| Unloading at destination | Buyer | Buyer |
| Import clearance | Buyer | Seller |
| Import duty and VAT | Buyer | Seller |
| Risk passes | At the place of destination, when the goods are ready for unloading from the arriving means of transport. | At the place of destination, after import clearance, when the goods are ready for unloading. |
| Mode of transport | Any mode of transport (sea, rail, air, road) | Any mode of transport (sea, rail, air, road) |
Notes
- Unloading at destination: if unloading costs are included in the contract of carriage concluded by the seller, the seller pays them and cannot charge them to the buyer afterwards.
What to watch for when importing from China
DAP Delivered at Place
The supplier delivers the goods to the agreed address, but import clearance, duty and VAT are your responsibility. A “DAP Warsaw” price is therefore not the final price – add duty, VAT and the cost of customs clearance. State the exact address, because “DAP Poland” is not enough. Unloading is also your responsibility.
More about DAP →DDP Delivered Duty Paid
The supplier has to act as the importer in Poland: declare the goods for customs clearance and pay duty and VAT. A Chinese supplier is rarely able to do this on its own, so it uses intermediaries. Goods shipped under DDP sometimes do not go through proper import clearance – and it is then the consignee who has a problem with goods that were not legally released for free circulation. With a new supplier, DAP is the safer choice.
More about DDP →When to use DAP and when to use DDP?
- DAP – when the supplier is to deliver the goods to your address, and you want to keep customs clearance in your own hands. With a new supplier, it is a safer alternative to DDP.
- DDP – when the supplier is reliable and can legally clear the goods in Poland as the importer, and you want the goods delivered with duty and VAT paid.
Has your supplier quoted a price including transport?
Compare it with our offer for transport from China – by rail, sea or air – with customs clearance in Poland and cargo insurance. Send us your cargo details and we will prepare a quote tailored to your shipment.
Request a quoteFAQ
What is the main difference between DAP and DDP?
Under DDP, the seller also covers import clearance as well as import duty and VAT. Under DAP, the buyer pays for this instead. Under both rules, risk passes to the buyer at the place of destination, before unloading.
Where does risk pass to the buyer under DAP?
At the place of destination, when the goods are ready for unloading from the arriving means of transport.
Where does risk pass to the buyer under DDP?
At the place of destination, after import clearance, when the goods are ready for unloading.
Can DAP and DDP be used for rail freight from China?
Yes. DAP and DDP can be used with any mode of transport: sea (including containers), rail, air and road.
Compare other pairs
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This page is an independent, simplified summary of how costs and risks are divided – it is not affiliated with or approved by the ICC. When drafting contracts, use the official text of the Incoterms® 2020 rules published by the ICC.