What's the difference between DAP and DDP in Incoterms?

DAP (Delivered at Place): The seller delivers to your named destination (e.g., your warehouse) but you, the buyer, are responsible for import customs clearance, import duties, and taxes in your country.

DDP (Delivered Duty Paid): The seller takes full responsibility — freight, insurance, import customs, duties, and all taxes — and delivers to your door. Your only job is to receive the goods.

When to choose DAP:

• You have an established relationship with a customs broker
• You want control over import classification and duty rates
• Your country has complex import regulations (e.g., licenses, permits) the seller may not understand
• The seller adds a premium for DDP that exceeds your actual duty cost

When to choose DDP:

• You're a new importer without customs knowledge
• Small/occasional shipments where managing customs isn't worth the effort
• Your country has low import duties and the seller's DDP premium is reasonable

Hidden risk with DDP: If the seller undervalues the goods on customs documents to reduce duties, you (as the legal importer of record) may still be held liable for duty underpayment. Always ensure the declared value matches the real transaction value.