DDP vs DAP: What’s the Difference?

When shipping goods across borders, it's crucial to understand who is responsible for what—especially when it comes to customs duties, taxes, and delivery risk. That’s where Incoterms like DDP (Delivered Duty Paid) and DAP (Delivered at Place) come in.

While they may sound similar, the differences between DDP and DAP can significantly impact shipping costs, customs responsibilities, and risk. This guide will help you clearly understand the distinction, compare real-world examples, and decide which is best for your business.

What Are Incoterms?

Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC). They define the obligations of buyers and sellers in global trade transactions—who arranges shipping, who pays duties, who handles customs clearance, and when risk transfers.

Both DDP and DAP are commonly used Incoterms for international B2B and ecommerce shipments.

What Is DDP (Delivered Duty Paid)?

DDP means the seller takes on the most responsibility. They deliver the goods to the buyer’s specified location, covering all shipping costs, customs duties, and import taxes. The buyer just receives the goods—no additional paperwork or payments.

Seller’s responsibilities under DDP:

Export documentation


Freight and insurance


Import clearance and paperwork


Payment of duties and taxes


Final delivery to buyer’s door

Buyer’s responsibilities under DDP:

Just receive the goods

For buyers: DDP is hassle-free. You pay one price and receive your goods without having to deal with customs or surprise fees.

Real-world example:

A furniture company in Italy sells large outdoor dining sets to a retailer in the U.S. under DDP. The Italian seller handles all customs declarations, pays U.S. import duties, and arranges delivery to the retailer’s warehouse in New Jersey. The buyer simply receives the goods—no delays or surprise costs.

What Is DAP (Delivered at Place)?

DAP means the seller delivers the goods, but the buyer handles import responsibilities. The seller arranges transportation to a named place (like a port or warehouse), but the buyer takes care of customs clearance, duties, and taxes from that point forward.

Seller’s responsibilities under DAP:

Export documents and shipping


Risk and cost up to the agreed location

Buyer’s responsibilities under DAP:

Import clearance


Payment of duties and taxes


Local delivery (if needed)

For buyers: DAP gives you control over customs clearance and import costs, but you’ll need to handle more paperwork and payments once the shipment arrives.

Real-world example:

A bike manufacturer in Taiwan sells electric bikes to a U.S. distributor under DAP terms. The seller ships the bikes to the Port of Long Beach. Once they arrive, the U.S. buyer hires a customs broker, pays import duties, and arranges for final delivery to their warehouse.

Key Differences: DDP vs DAP

Which Should You Use: DDP or DAP?

Here’s how to decide:

Choose DDP if:

You’re shipping to buyers unfamiliar with customs clearance


You want to provide a hassle-free experience


Your products are going to consumers (e.g., ecommerce fulfillment)


You’re shipping small quantities or samples

Choose DAP if:

Your buyer has a broker or customs team in place


You want to avoid dealing with destination-country regulations


You’re selling large volumes and want to reduce shipping costs


You're shipping to B2B clients who prefer to handle duties themselves

Key Takeaway: 

Choose DDP if you want a simple, all-inclusive price and don’t want to worry about customs, duties, or logistics in your country. This is great for first-time importers or businesses without a customs broker.

Choose DAP if you want more control over customs clearance, have experience with import procedures, or have a trusted broker that can help you save on duties and taxes.

Price Considerations: DDP vs DAP

DDP tends to be more expensive upfront because the seller factors in customs duties, taxes, and added risk.


DAP is cheaper on paper, but may result in delays or added handling costs for the buyer—especially if customs isn’t cleared quickly.

In ecommerce or high-value transactions, this price difference can significantly impact profit margins.

Common Mistakes to Avoid

Sellers underestimating import taxes under DDP, resulting in unexpected fees.


Buyers choosing DAP without customs experience, causing delays and penalties.


Assuming DAP includes final delivery — in many cases, it only means delivery to the port or warehouse, not to your door.


Mismatched expectations — always confirm what location the “place” refers to in DAP.

Best Practices for Using DDP and DAP

Always specify the exact delivery location in writing.


Use a customs broker if you're handling import clearance under DAP.


Get quotes that break down shipping, customs, and delivery charges.


Choose your Incoterm based on experience, risk tolerance, and destination regulations.

How 3PL Center Can Help

Whether you're using DDP or DAP, 3PL Center makes shipping and fulfillment smooth.

If you’re shipping under DDP, we receive goods at our warehouse and immediately begin fulfillment with real-time inventory tracking through our WMS.


If you’re shipping under DAP, we coordinate with your customs broker and receive goods directly at our warehouse for fast turnaround.


Our strategically located U.S. warehouses ensure fast delivery to customers nationwide.


Plus, we offer container tracking, customs coordination, and discounted carrier rates to keep your shipping costs low—no matter what Incoterm you choose.

Final Thoughts

Understanding DDP and DAP is crucial for international shipping success. DDP is the stress-free choice for buyers, while DAP offers flexibility and cost savings for those comfortable with import processes. Need help with shipping, customs, or fulfillment? Contact 3PL Center to learn how we can support your global logistics.