DDP vs DAP: Key Differences and Who Pays What (2026)

The difference between DDP and DAP comes down to who clears import customs and pays the duty and taxes. Together with EXW, these three Incoterms decide who pays for each part of a shipment from China, and who takes the risk. Under EXW you pay for almost everything after the factory gate. Under DAP the seller delivers to your door but you pay the import duty. Under DDP the seller pays for everything, duty included. Below we explain each term, then price the same shipment three ways so you can see the difference in real numbers.

Key points
• EXW: cheapest-looking price, but you arrange and pay for pickup, export clearance, freight, import duty and delivery.
• DAP: the seller pays freight to your address; you clear customs and pay duty and taxes on arrival.
• DDP: one delivered price including duty; the seller (or its forwarder) acts as importer.
• Compare quotes on the total landed cost, not on the product price alone.
• DDU is no longer an Incoterm. It was replaced by DAP in 2010.

DDP vs DAP vs EXW: the short answer

EXW: you take over at the factory gate

Under EXW the supplier only makes the goods ready at its premises. Strictly, it does not even have to load your truck. Everything after that is yours: pickup, export customs in China, freight, import customs, duty and final delivery.

EXW prices look low because so much is left out. There is also a practical problem: export customs in China must be declared by a Chinese exporter. A foreign buyer cannot do this alone, so you still need the supplier’s export documents or a forwarder in China who can declare for you.

If you use EXW, ask your forwarder to quote pickup and export clearance together with the freight, so nothing falls between the supplier and the ship. Many buyers find FOB (supplier clears export and delivers to the port) or FCA simpler. Our FOB vs EXW guide compares the two in detail.

What is DAP? Delivered to your door, duty unpaid

Under DAP the seller pays for transport all the way to the address you name. When the goods arrive, you (or your customs broker) clear import customs and pay the duty, import VAT or sales tax and customs fees. Then the goods are delivered.

DAP suits buyers who already have a customs broker or want to stay the importer of record, for example to reclaim import VAT in Europe or keep control of their customs history in the US.

Watch for one thing: if duty is not paid quickly, the goods wait at the port and storage charges add up. Agree in advance who will clear customs.

What is DDP? One price, everything included

Under DDP the seller pays for everything up to your door, including import duty and taxes, and takes the risk until delivery. You receive the goods without dealing with customs.

Someone still has to be the importer in your country:

• USA: the importer of record pays duty and is responsible for the declaration. A foreign seller or its forwarder can act as importer with a US customs bond and broker.
• EU and UK: the importer needs an EORI number, and import VAT has to be paid. Under DDP the seller or its forwarder handles this, so you normally cannot reclaim that VAT yourself.

Be careful with very cheap “DDP” offers. If a price only works because the goods are declared below their real value, the goods can be held, fined or seized, and your company name may be on the paperwork. Ask how the duty in the quote was calculated.

Example: the same shipment priced three ways

Here is one shipment from Shenzhen to a warehouse in Los Angeles: 10 CBM of goods (shared container, LCL), factory value USD 20,000. We assume a product on Section 301 List 4A with 0% normal duty, so the US duty is 7.5% + 12.5% = 20% (see our 2026 US tariff guide).

The costs below are example figures to show how the terms work, not a quote. Freight rates and duties change.

The total is the same. What changes is who arranges each step, who carries the risk and when you pay. In practice a DDP price is often a little higher than the sum of the parts, because the seller takes on the risk of duty and delays.

Two things to know about duty:

• In the US, duty is charged on the value of the goods, not on the freight.
• In the EU and UK, duty is charged on the value including freight to the border, and import VAT is added on top of the duty-paid value. The same shipment to Europe therefore needs a different calculation.

To work out the volume and chargeable weight of your own shipment, use the calculator below.

DDU vs DDP: what if your supplier quotes DDU?

DDU (Delivered Duty Unpaid) is an old Incoterm. It was removed in Incoterms 2010 and replaced by DAP, but many suppliers and couriers still use the name. The difference from DDP is simple:

• DDU (now DAP): the seller delivers to your address, but you pay the import duty and taxes and handle customs clearance. The courier or broker may bill you before handing over the goods.
• DDP: the seller pays the duty and taxes and clears customs, so nothing is due on delivery.

If a quote says DDU, ask the supplier three things in writing: who clears customs at the destination, who pays the duty and import VAT, and who pays the clearance fees. Then treat it as DAP. To avoid charges on delivery, ask for DDP shipping instead.

DDP or DAP: which should you choose?

1. First order from a new supplier, or no customs broker: DDP. One price, one contact, fewer surprises. Ask how the duty was calculated.
2. Regular imports and your own customs broker: DAP, or FOB with your own forwarder. You keep control of customs and can reclaim import VAT in Europe.
3. Several suppliers in China: EXW or FOB to one forwarder who collects from each factory and ships everything together (see our consolidation checklist).
4. Amazon FBA: usually DDP, because Amazon warehouses do not handle customs and will not accept unpaid deliveries.

Not sure which fits your shipment? Send us the product, quantity and destination and we will quote DDP and DAP side by side.

Want the full details on DAP alone, including who unloads and what happens if import clearance is delayed? See our guide to DAP Incoterms.

Frequently asked questions

What is the main difference between DAP and DDP?

Who handles import clearance and pays the import duty and taxes. Under DAP the buyer does; under DDP the seller does. Up to delivery at the named address, the two terms are the same: the seller arranges and pays the transport and carries the risk.

Is DDU the same as DAP?

Almost. DDU (Delivered Duty Unpaid) was removed from the Incoterms rules in 2010 and replaced by DAP. Some suppliers still write DDU; treat it as DAP and confirm in writing who pays the duty. For all 11 current rules, see Incoterms 2020 explained.

Is DDP more expensive than DAP?

The total cost is usually close, because the same freight and duty are paid either way. A DDP quote may include a small margin for the duty and delay risk the seller takes on.

Who is the importer of record under DDP?

The seller, or a forwarder acting for the seller. That party signs the import declaration and is responsible for the duty and the declared value.

Where does the risk pass from seller to buyer?

Under EXW, at the seller’s premises. Under DAP and DDP, at the delivery address you named, before unloading.

Which Incoterm is best for shipping from China?

There is no single best term. DDP is simplest for new and Amazon sellers; FOB or DAP gives experienced importers more control. EXW only makes sense if your own forwarder in China handles pickup and export clearance.

Comparing total costs? Read the cheapest way to ship from China.

Checked on October 19, 2026, against the Incoterms 2020 rules and current US customs fees. The example costs are for illustration only. This guide is general information, not legal or customs advice.