DAP vs DDP: Incoterms Explained for Uniform Buyers

The difference between DAP and DDP comes down to who handles import clearance and who pays the import duties and taxes. Under DAP, the seller delivers the goods to a named place and the buyer handles clearance and pays duties and taxes. Under DDP, the seller does all of that as well. For uniform buyers, knowing which term is in your quote tells you what you will still need to arrange and pay when the cartons arrive.

What Incoterms are

Incoterms are a set of standard trade terms published by the International Chamber of Commerce. Each one is a short code that tells both sides of a sale three things: where the seller’s delivery obligation ends, who arranges and pays for each part of the transport, and when the risk of loss or damage passes from seller to buyer.

They do not cover everything. Payment terms, ownership of the goods and what happens if something is wrong with them are agreed separately. A quote should always state the Incoterm together with a named place, for example “DAP, your warehouse, Dubai”, because the term means little without the place.

DAP: Delivered at Place

Under DAP, the seller arranges and pays for transport to the named place in the buyer’s country. The goods are delivered when they arrive there, ready to be unloaded. The buyer is responsible for:

• Import customs clearance.
• Import duties, VAT or other taxes.
• Clearance charges from the broker, forwarder or courier.
• Unloading at the destination, unless agreed otherwise.

In practice, for a courier shipment under DAP, the courier may contact you to pay duties and taxes before or on delivery. For air or sea freight, your customs broker or freight forwarder handles the clearance and bills you for it.

DDP: Delivered Duty Paid

Under DDP, the seller takes on the most responsibility of any Incoterm. The seller arranges transport to the named place, handles import clearance in the buyer’s country, and pays the import duties and taxes. The buyer simply receives the goods.

That sounds simpler, and for the buyer it can be. But it requires the seller to act as, or appoint, the importer in your country, which is not always possible or practical. Some import taxes can be recovered by a registered local business, and that may not work in the same way if the seller pays them. Talk to your accountant or customs broker before asking for DDP.

DAP vs DDP side by side

Responsibility	DAP	DDP
Transport to the named place	Seller	Seller
Export clearance in India	Seller	Seller
Import clearance at destination	Buyer	Seller
Import duties and taxes	Buyer	Seller
Unloading at destination	Buyer	Buyer
Risk passes to buyer	On arrival at the named place	On arrival at the named place

What this means for a uniform order

For most uniform orders, the choice affects three things:

1. Your total cost. Under DAP, the quote does not include import charges, so add an estimate from your broker to compare quotes fairly.
2. Your workload. Under DAP, someone at your end must respond to the courier or broker, provide any documents they request and pay the charges promptly. Delays in clearance can affect your date.
3. Your paperwork. Whichever term you choose, ask the manufacturer what documents they will send with the shipment, such as the commercial invoice and packing list, and share them with your broker early.

A school expecting a large sea shipment before reopening, for example, should have its clearance agent lined up before the goods leave India. Our guide to air freight vs sea freight explains how the shipping method changes who you will deal with at your end.

Questions to ask before you confirm

• Which Incoterm and named place does the quote use?
• Is shipping shown as a separate line?
• Who is the importer of record at my end?
• What documents will travel with the goods?
• Does my broker need anything from me before the goods arrive?
• If import charges are mine, what does my broker estimate them to be?

Rules, rates and requirements differ by country and change over time. Treat this guide as general information and confirm the details with your customs broker, freight forwarder or the relevant authority.

How we quote international orders

Our default is that the buyer pays import duties, VAT or taxes and clearance charges, unless something different is agreed in writing before the order is confirmed. Shipping is itemised in the quotation, and orders go by air courier or sea freight depending on quantity and date. Payment is by bank transfer on terms agreed before confirmation.

Uniforms are made to order at our unit in Konni, Pathanamthitta, Kerala, for buyers in the UAE, Saudi Arabia, Oman, the UK and the US. If you are building your own brand, our private label service covers sewing in your own labels.

For more on how international orders work, see our international orders page.