DAP or DDP? Before promising door delivery

A truck quote from port to warehouse is not enough to promise DDP. First establish who can handle import formalities, how duties and taxes will be settled and exactly where delivery takes place.

DAP and DDP are Incoterms 2020 rules usable with different transport modes. They are not just ocean terms or interchangeable labels for door-to-door service.

What they share

Under both rules the seller arranges and pays transport to the agreed destination. Delivery occurs when the goods are at the buyer's disposal on the arriving means of transport, ready for unloading.

This is the principal risk-transfer point, not automatically vessel loading as under some sea rules. Consult the complete rules for exceptions arising from parties' failures to perform their obligations.

Name the precise point, such as the actual warehouse receiving location. A city name can leave disagreement over whether the service reaches the promised destination.

The main difference: import clearance

Under DAP, the buyer handles and pays import clearance. The seller handles export and required transit formalities. The buyer therefore needs an import plan even though the seller ordered transport.

Under DDP, the seller also assumes required import formalities and related charges, including duties and taxes under the rule. This needs destination-country assessment, not merely an addition to truck pricing.

Incoterms do not grant a foreign company powers unavailable under local law or independently determine tax recovery rights. Confirm those matters with the appropriate customs and tax professionals.

Before offering terms

No mandatory insurance for the buyer does not remove the seller's risk up to delivery. Assess insurance separately.

Unloading costs may already be included in the seller's carriage contract. Check to avoid duplicate payment. Paying for unloading does not automatically alter the delivery/risk point; distinguish the operation from its price.

Can the seller actually perform DDP?

Before committing, identify the relevant importing entity, required registrations and authority, and whether the proposed representation arrangement is permitted.

Ask about tax settlement, supporting records and responsibility for product data. “The agent handles everything” is insufficient without identifying the entity and legal basis.

ICC's January 2025 publication describes national barriers to Incoterms performance, including DDP. It flags the need for local review, not current tax instructions for every listed country. Verify the actual destination afresh.

A fictional inconsistent promise

A seller offers DDP but leaves import clearance and taxes with the buyer in the proposal without explanation. Resolve that inconsistency before signing, not after arrival.

If the buyer is intended to handle import, consider a suitable rule such as DAP with the exact place and agreements. If modifying a rule, make the cost and risk effects explicit and have the relevant advisers check them.

“DDP excluding taxes” is not a self-sufficient solution. Ambiguous wording can leave opposing expectations.

Agree what happens at the door

Check appointments, receiving hours, vehicle access, unloading equipment and time. For containers, plan the empty return too.

Waiting and clearance-delay costs depend on causes, contracts and tariffs. The three-letter sale rule does not resolve every carrier invoice against every participant.

Questions for the buyer

Proposed terms: [DAP/DDP, precise delivery point, Incoterms 2020]. Confirm the importing entity and clearance plan, registrations, documents and duty/tax settlement. Unloading: [operator/cost scope]; appointment: [arrangement]. Open points before commitment: [list]. Confirm information duties and the response to clearance holds or inability to receive.