One of the most frequent questions we receive from clients is:
“DAP vs DDP – which is better for my shipment?”
At first glance, both terms sound almost identical. Under both DAP and DDP, the seller takes responsibility for delivering goods all the way to the buyer’s destination country. But the difference lies in who handles import duties, taxes, and customs clearance.
In today’s guide, we’ll go beyond basic definitions to explore the practical differences and hidden risks. Include the real-world implications of DAP vs DDP when shipping from China to destinations worldwide.
What DAP and DDP actually involve
Briefly for context:
Under DAP (Delivered at Place), the seller (such as the Chinese exporter/forwarder) delivers the goods to a named place in the buyer’s country. Once the shipment arrives, the buyer takes over, handling import customs clearance, duties, taxes, and unloading.
By contrast, under DDP (Delivered Duty Paid), the seller carries nearly the entire burden. They manage the whole logistics chain, including shipping, documentation, customs clearance, and payment of all duties and taxes, until the goods reach the buyer’s door. The buyer’s role is minimal, making DDP attractive for those seeking a fully inclusive, door-to-door solution.
The core difference: Who handles import customs
| Aspect | DAP | DDP |
|---|---|---|
| Import Duties & Taxes | Paid by the buyer | Paid by the seller |
| Customs Clearance | Buyer (or their broker) | Seller (or their appointed agent) |
| Importer of Record | Buyer | Seller (or their representative) |
| Risk Transfer Point | At the buyer’s designated place (before customs for DAP, after for DDP) | After delivery, once customs are cleared |
In short, Delivered at Place ends before import customs, while Delivered Duty Paid covers customs and taxes.
Practical implications when shipping from China
Cost transparency
Under DDP, your Chinese forwarder includes all costs, like freight, duties, and taxes, so the buyer obtains an all-inclusive door-to-door price. It looks convenient, but it can hide inflated margins or incorrect duty calculations.
With DAP shipping terms, the buyer pays import duties directly to local customs or via their broker, often resulting in clearer cost breakdowns and better compliance.
Managing risk and compliance
- DDP shipping term: The seller bears customs risk. If duties are underpaid or documents are incorrect, penalties fall on the seller.
- Delivered at Place: The buyer bears customs risk but retains control, which often results in smoother, compliant imports.
Tip: When working with your freight forwarder in China, ensure they have experience handling both Delivered at Place and Delivered Duty Paid shipments. It is especially true if your cargo requires special handling, such as refrigerated containers, lithium batteries, or other dangerous goods (DG).
DAP vs DDP by destination region
Different countries have unique customs systems and regulatory environments. Let’s look at how DAP and DDP perform region by region:
Europe (EU Countries)
DDP can be risky if the seller is not VAT-registered within the EU. Customs may block clearance if the foreign exporter cannot act as the importer of record (IOR).
For B2B shipments, DAP is safer because the importer handles customs via their EU EORI number.
However, for B2C e-commerce, DDP with IOSS (Import One-Stop Shop) can simplify VAT handling.
United Kingdom
Since Brexit, all imports into the UK require clear customs declarations and documentation.
DDP is suitable only if your Chinese supplier has a UK VAT registration and can legally pay import VAT. Otherwise, it can create compliance issues or delays.
When that’s not the case, it’s safer to use DAP, appoint your own UK customs broker, and manage import VAT directly.
United States (USA)
U.S. Customs requires that each import shipment have an Importer of Record with a valid local Employer Identification Number(EIN).
Because Chinese exporters typically do not possess a U.S. EIN, they cannot legally act as the IOR. It makes DDP shipments from China to the U.S. complicated and sometimes risky.
In most cases, DAP or DAP combined with a licensed U.S. customs broker is the more practical and compliant option for importers.
Middle East (UAE, Saudi Arabia, Qatar)
In the UAE, DDP can work well if the seller has a local partner or authorised agent to handle import documentation. However, when that structure is not in place, DAP is generally preferred, allowing buyers to manage duty payments directly through their local customs portals.
How to decide: DAP or DDP?
Here’s how to choose based on your situation:
| Scenario | Recommended Term |
|---|---|
| You have a reliable customs broker or local agent | DAP |
| You want all-in-one delivery with no customs involvement | DDP |
| You ship dangerous goods or oversized cargo | DAP (due to complex clearance procedures) |
| You’re selling B2C with small parcels to end customers | DDP (often via courier with prepaid duties) |
| You export regularly to the same market | DAP (to maintain full import record control) |
Final Thoughts
In summary, DAP vs DDP isn’t about which Incoterm is “better,” but about which one best fits your logistics strategy and structure.
At ASLG, we specialise in managing both DAP and DDP shipments from China with complete visibility, cost efficiency, and regulatory compliance.
Our expert team manages every stage, from origin handling and freight booking to customs clearance and last-mile delivery. We ensure your cargo reaches its destination safely, on time, and without hidden costs.
