DAP and DDP transfer risk at the exact same point — the difference is entirely about who pays import duties and handles customs clearance at the destination.
| DAP — Delivered at Place | DDP — Delivered Duty Paid | |
|---|---|---|
| Transport mode | Any mode | Any mode |
| Risk transfers | At named destination, ready for unloading | At named destination, ready for unloading |
Under DAP, the seller delivers to the named destination but the buyer is responsible for import customs clearance and paying any import duties and taxes. Under DDP, the seller handles import clearance and pays the duties themselves, so the buyer receives goods with no further charges. This single difference has a big practical impact: DAP shipments can be held at customs if the buyer is slow to clear them or pay duties; DDP shipments clear customs as part of the seller's process.
Your buyer is an experienced importer who prefers to handle their own customs clearance and duty payment, or local regulations require a local entity to act as importer of record.
You're selling to consumers or first-time importers who expect a single landed price with no customs surprises — this is standard for most courier and e-commerce shipments today.
Both are used, but DDP has become increasingly standard for B2C e-commerce because customers expect no surprise charges at delivery. DAP remains common for B2B shipments where the buyer is an experienced importer with their own customs broker.
Yes — since the buyer is responsible for import clearance and duty payment under DAP, a slow or unresponsive buyer can cause the shipment to be held at customs until they act. This is one reason many e-commerce sellers prefer DDP.
Often yes, or they need to appoint a customs broker who can act as (or on behalf of) the importer of record — some countries don't allow foreign entities to import directly, which is a key practical limitation on using DDP.
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