The import responsibility is the key difference
Under Incoterms® 2020, DDP assigns import clearance and import duties to the seller; under DAP these are the buyer’s responsibility. Both deliver at the named destination ready for unloading. Specify the exact place and version of the rule in the sales contract.
The Incoterm governs the seller–buyer allocation. A freight forwarder’s quotation is a separate service agreement, so check that its tasks and exclusions support the chosen term. The label “door to door” alone does not resolve importer eligibility or tax arrangements.
Reviewing a smaller repeat order? Use our DDP vs DAP comparison for small replenishment orders to check minimum charges, tax scope and the receiving deadline against the same cargo brief.
Check whether the arrangement can work at destination
- Identify the importer of record and the customs representative before approving the order.
- For a DDP sale, confirm how the seller will fulfil the destination import obligations lawfully.
- For a DAP sale, make sure the buyer can provide import registrations, instructions and payment for relevant import charges.
- Name the delivery address and agree receiving hours, access restrictions and unloading arrangements.
- Ask how examination, storage, redelivery or other exceptional work will be approved and invoiced.
Request comparable quotations using the same cargo, pickup point and delivery address. Show freight, origin handling, destination handling and any included import amounts separately where practicable. Ask how provisional charges will be reconciled and which evidence will be provided.
A quoted tax estimate can depend on classification, value and the actual import treatment. Have the responsible party check the basis before treating it as a final landed cost. Do not assume every destination accepts the same DDP operating model.
Questions to resolve before accepting the quote
Does DDP mean every possible extra charge disappears?
Check the contracts and written inclusions. Exceptional handling, changed cargo or delivery instructions can require a separate agreement. Ask for the approval process before dispatch.
Is DAP suitable when the buyer has its own customs broker?
It may fit that arrangement if the buyer can handle import obligations and the transport provider can coordinate the agreed delivery. Confirm responsibilities with all parties.
Does either rule require the seller to buy cargo insurance?
Neither DAP nor DDP imposes that insurance obligation under the rule. Discuss cover separately and check the policy scope.
Compare DDP shipping services and DAP shipping services. Send the pickup city, destination and packed cargo details for a written scope.
Reference: ICC Academy: DDP obligations. Check the current official requirements for your shipment.
Reference: ICC Incoterms® 2020 checklist. Check the current official requirements for your shipment.