With DDP (door to door), the seller arranges transport and import clearance and pays the duties and taxes due up to the named place of delivery. With DAP, the seller arranges transport to the named place, while the buyer handles the import formalities and pays the import duties and taxes — in other words, customs duties and customs clearance are the buyer's responsibility.
DDP — Delivered Duty Paid
Under DDP, the supplier (the seller) bears all costs until the shipment arrives at the customer's door, fully cleared. That includes freight, insurance, customs duties and any local taxes. The customer does not have to deal with any customs procedures personally.
DAP — Delivered At Place
Under DAP, the shipment is delivered to the agreed destination, but the importer (the customer) pays the customs duties and local taxes after arrival.
The Key Difference
DDP: A clear final cost from the start and more peace of mind. Well suited to anyone who prefers not to deal with customs personally.
DAP: May look cheaper on the initial invoice, but the importer must manage customs clearance personally or through a local customs broker.
DDP vs DAP at a Glance
| Item | DDP | DAP |
|---|---|---|
| Transport to the named place | Arranged and paid for by the seller | Arranged and paid for by the seller |
| Import customs clearance | Seller's responsibility | Buyer's responsibility |
| Customs duties | Paid by the seller | Paid by the buyer |
| Import fees and taxes | Paid by the seller as part of their obligation and built into their price | Paid by the buyer on top of the DAP quoted price |
| Unloading on arrival | Usually the buyer's responsibility, unless covered by the transport contract or the agreement | Usually the buyer's responsibility, unless covered by the transport contract or the agreement |
| Transfer of risk | When the goods are placed at the buyer's disposal, ready for unloading at the named place, after import clearance | When the goods are placed at the buyer's disposal, ready for unloading at the named place |
Insurance is not automatically included under DAP or DDP, so ask whether it is covered in the quotation. Also, DDP does not exempt a product from the approvals or entry requirements of the destination country.
Illustrative Cost Example for a Shipment to Saudi Arabia
Suppose a company offers to ship the same order to the same address at the two prices below. The figures are for illustration only; they are not actual shipping rates or official fees:
| Item | DAP offer | DDP offer |
|---|---|---|
| Quoted price | 4,000 SAR | 6,300 SAR |
| Assumed import duties | 300 SAR, paid by the buyer | Included in the seller's obligation |
| Assumed import tax | 800 SAR, paid by the buyer | Included in the seller's obligation |
| Assumed clearance fee | 100 SAR, paid by the buyer | Included in the seller's offer if confirmed in writing |
| Loading charges | 250 SAR, paid by the buyer | Included in the seller's obligation |
| Delivery to warehouse | 760 SAR, paid by the buyer | Included in the seller's obligation |
| Total in this example | 6,210 SAR | 6,300 SAR |
Actual results may vary depending on the product's classification, its customs value, the country of arrival, the actual fees and how the tax is calculated. Ask for a written breakdown of what each offer includes, and check who will be the importer of record, especially if the goods are cosmetics.
Which One Should You Choose?
If this is your first import, or you prefer simplicity and knowing the full cost upfront, DDP is the better fit. If you have experience, or a reliable customs broker in Saudi Arabia, and want more flexibility on cost, DAP may suit you better. Either way, you can estimate your shipping cost here.
This comparison is based on the Incoterms® 2020 rules published by the International Chamber of Commerce. In your contract, specify the term (DDP or DAP), the exact place of delivery and the version of the rules.
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