Home / Guides / DAP vs DDP
SHIPTALLY / FIELD GUIDE

DAP vs DDP for UK businesses

Both rules can put the seller in charge of delivery to the named destination. The big difference is who deals with import clearance, duty and import taxes.

QUICK ANSWER

DAP and DDP differ at the import border

Under DAP the buyer normally handles import clearance and import duties/taxes. Under DDP the seller takes that responsibility — which can create registration, importer-status and VAT-recovery problems if the seller cannot legally or practically do what the contract promises.

DAP and DDP side-by-side

QuestionDAPDDP
Seller arranges carriage to named destinationYesYes
Seller carries risk to named destinationYes, until delivery ready for unloadingYes, until delivery ready for unloading
Seller handles export clearanceYesYes
Who handles import clearance?BuyerSeller
Who carries duty / import-tax responsibility under the rule?BuyerSeller
Seller unloads at destination?No under the standard ruleNo under the standard rule

The customer-experience difference

Under DAP, the buyer can receive a request from the carrier or customs intermediary for import duty, VAT and handling/disbursement charges before delivery. For a consumer sale, that surprise can create refused parcels, complaints and returns.

DDP gives the seller more control over the delivered price, but only if the seller has a legally and operationally workable way to handle destination import clearance and taxes.

The practical UK issue with DDP

Writing “DDP” on a quotation does not magically make an overseas seller eligible to act as importer, obtain the right registrations or recover UK import VAT. Before using DDP into the UK, establish who will be importer, how the declaration will be made, what VAT position applies and how the carrier/broker will bill the charges.

Rule of thumb: do not promise “all duties paid” until the import setup exists in real life, not just in the sales wording.

Costing the two options

DAP and DDP can have the same physical route but very different commercial economics. Under DDP, the seller may need to build duty, import VAT where irrecoverable, brokerage/disbursement, destination clearance and admin into the selling price. Under DAP, some of those costs move to the buyer — but that can affect conversion and customer satisfaction.

Compare DAP and DDP in the Incoterms® checker · Test the selling margin

Write the named place properly

Use the three-letter rule, a precise named place and “Incoterms® 2020”. “DAP UK” or “DDP customer” is not precise enough to describe the hand-off. Make carrier instructions, website wording and the sales contract tell the same story.

Official sources

LAST REVIEWED / 03 OCT 2026