Home / Logistics Knowledge / DDP Shipping: Meaning, Pros & Cons
DDP delivers goods to your door with duty and tax already paid. Convenient for the buyer, but it carries risk and cost the seller builds into the price.
Under DDP (Delivered Duty Paid), the seller handles everything to your named place: export, main freight, import clearance, payment of duty and tax, and final delivery. The buyer simply receives the goods. It is the Incoterm with the most seller responsibility.
DAP (Delivered At Place) is similar but the buyer pays import duty and tax. DDP shifts that payment to the seller. Choose DAP if you want control and possibly lower cost; choose DDP if you want simplicity and a fixed price.
| Factor | DDP | DAP |
|---|---|---|
| Import duty and tax | Seller pays | Buyer pays |
| Buyer effort at customs | Minimal | Handles clearance and payment |
| Price transparency | All included | Higher visibility of cost |
| Buyer control | Low | Higher |
The seller pays import duty and tax and delivers to your door; the cost is built into the price.
It is convenient and predictable, but you pay a premium and lose visibility into the import process.
Under DAP the buyer pays import duty and tax; under DDP the seller does.
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