DDP and DAP both place significant transport responsibility on the seller, but they divide import clearance and duty obligations differently. That difference can materially change the landed cost seen by the buyer.
DAP: Delivered at Place
Under DAP, the seller delivers when the goods are placed at the buyer’s disposal on the arriving means of transport, ready for unloading, at the named destination. The seller bears the transport risk to that point, while import clearance, duties and taxes are generally for the buyer.
DDP: Delivered Duty Paid
Under DDP, the seller delivers the goods at destination cleared for import and is responsible for import duty and applicable taxes. ICC describes DDP as the Incoterms rule that places the maximum level of obligation on the seller.
Why the commercial price can look misleading
A DAP quote may appear lower because import costs are excluded from the seller’s price. A DDP quote may appear higher because those costs are built into the seller’s responsibility. Compare the total landed cost, not just the supplier invoice.
Use the Freight Cost Allocation Calculator to allocate transport-related costs across product groups and the Freight Cost Per Unit Calculator to convert shipment-level charges into unit economics.
Specify the named place precisely
Incoterms work best when the contract identifies the exact named place or point. Ambiguity around the destination can create disputes over terminal, delivery and unloading costs.
For the authoritative definitions, see the ICC Incoterms 2020 explanatory notes. Incoterms define delivery responsibilities and risk allocation; they do not replace the full sales contract.
PackToolbox guides are built around stated formulas, practical examples and source checks for changeable carrier, freight and logistics rules. Calculators are planning aids; final requirements should be verified with the relevant carrier or service provider.