DDP vs DAP (Incoterms 2020): the difference and which to choose
DDP and DAP are two similar delivery terms under Incoterms 2020: in both the seller carries the goods to the named place at the buyer. The difference is just one thing, but an important one: who clears the import and pays the duties and VAT. We break down DDP vs DAP in plain words and suggest what to choose for delivery to Ukraine.
What DDP and DAP are
DDP (Delivered Duty Paid) — the seller delivers the goods to the place and pays everything, including import duties and taxes. DAP (Delivered at Place) — the seller also carries to the place, but does not pay import duties and taxes — the buyer does. Both terms are from Incoterms 2020; for all of them see Incoterms explained.
Who is responsible for what
| Stage | DDP | DAP |
|---|---|---|
| Export clearance | seller | seller |
| Main carriage | seller | seller |
| Insurance (if any) | seller | seller |
| Delivery to place | seller | seller |
| Unloading (if agreed) | seller | seller |
| Import clearance | seller | buyer |
| Import duties & VAT | seller | buyer |
As you can see, everything matches except two rows — import clearance and duties/VAT: with DDP they are on the seller, with DAP on the buyer.
The key difference — import duties and taxes
The only real difference between DDP and DAP is who handles clearance in the buyer's country and pays the duties and VAT. With DDP the seller takes it all on, turnkey; with DAP the buyer clears the cargo and pays the taxes.
When to choose DDP or DAP
- DDP — when the buyer wants door-to-door delivery without worrying about customs or taxes; more convenient for the buyer, but costlier and riskier for the seller.
- DAP — when the buyer wants to control clearance and taxes (often cheaper, as they know the local rules and can reclaim VAT).
DDP and DAP for import to Ukraine
For a Ukrainian importer it matters: with DDP the foreign seller must clear the cargo in Ukraine and pay duties/VAT — hard to do without a local representative, so DDP is rarer in practice. With DAP the importer (or their broker) handles clearance — more flexible and often better on VAT. On the procedure itself see customs clearance in Ukraine, and on insurance by delivery term see cargo insurance.
Development prospects
Incoterms are updated roughly every 10 years, and shipping paperwork is going digital: electronic contracts and documents, automatic duty and VAT calculation, online customs. This makes choosing between DDP and DAP and estimating costs faster and more transparent — especially on a multimodal Middle Corridor route.
Summary
DDP = the seller carries and pays everything, including duties and taxes. DAP = the seller carries to the place, while the buyer pays the duties and taxes. Choose by who clears the cargo more conveniently. ABU JORJIA will help pick the delivery term and arrange delivery to Ukraine — send a request.
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