LatynexLogistics
Free Decision Tool

DDP vs DAP — Which Incoterm Is Right?

Answer 6 questions about your shipment and destination. Get a clear DDP or DAP recommendation with an explanation — no logistics knowledge required.

DDPDuties pre-paid option
DAPYou handle import
6Questions to answer
6Decision criteria
DDPDefault for FBA
48hAssessment delivery
VariesEORI need — by structure

Decision Tool

Answer These Questions

Select yes, no or unsure for each — then get your recommendation.

This tool is designed for EU/UK-style import scenarios and gives an indicative recommendation only. DDP availability, importer-registration requirements, VAT handling and customs representation vary by destination and shipment structure — confirm the exact setup for your route before booking.

1. Do you want import duties and VAT included in your freight quote?

DDP quotes cover all costs to your door. DAP leaves import costs to you.

2. Do you have an EORI number or customs broker in your destination country?

An EORI is required for EU/UK import clearance. Without one, you need a clearance agent.

3. Do you want door-to-door delivery (final mile included)?

DDP includes delivery to your premises. DAP typically ends at a port or warehouse.

4. Do you want the shipper to handle all customs clearance on your behalf?

Under DDP, customs clearance is arranged on your behalf where destination rules and shipment structure allow.

5. Is this shipment going to Amazon FBA (Fulfilment by Amazon)?

Amazon requires shipments to arrive DDP — all duties pre-paid. DAP will be refused at FC.

6. Do you want to control import duty payment and classification yourself?

Some importers prefer to manage their own customs process for cost control or compliance.

0 of 6 answered
4 more to go

Reference

DDP vs DAP — Key Differences

What each Incoterm means in practice for China freight.

DDP
DAP
Import duties & VAT
Included — pre-paid
Buyer pays on arrival
Customs clearance
Arranged by Latynex
Buyer arranges
EORI required (buyer)
Typically not, for that shipment
Yes
Door-to-door delivery
Included
May stop at port/warehouse
Amazon FBA compatible
Yes — required by Amazon
No — refused at FC
Cost control by buyer
Lower (pre-agreed rate)
Higher (you manage duties)
Customs classification
Latynex files
Buyer controls HS code
Surprise charges
Rare — scope confirmed upfront
Possible on arrival

Latynex quotes both DDP and DAP. DDP is the default for most SME importers and all Amazon FBA shipments.

In Plain English

Who Pays for What?

DDP and DAP shift where the cost and the paperwork sit — not whether the costs exist. Here's the typical split.

DDP
DAP
Freight cost (origin to destination)
Included in the DDP quote
Included in the DAP quote
Import duty
Paid by the shipper as part of the quote
Paid by the buyer on arrival
Import VAT / destination tax
Typically paid by the shipper as part of the quote
Typically paid by the buyer on arrival
Customs clearance fee
Handled and paid by the shipper
Buyer arranges and pays their own broker
Destination handling / delivery
Usually included to the named address
May stop at a port, airport or warehouse — check the quote
Import paperwork / declarations
Filed by the shipper
Buyer's broker files, using buyer's HS codes

This is the typical allocation — always confirm what a specific quote actually covers rather than relying on the Incoterm label alone.

Customs Responsibility

Who Handles Customs — and Who Is the Importer of Record?

Every import needs an importer of record — the party legally named on the customs declaration, responsible for duty/VAT payment and accurate classification. DDP and DAP describe who bears the cost and arranges the process up to that point — they do not by themselves determine who is legally the importer of record. Depending on the destination country and how the shipment is structured, the importer of record under DDP may be the buyer, the shipper, or an eligible representative acting on the buyer's behalf; in many EU/UK-style DDP structures the buyer doesn't need to register their own EORI for that shipment. Under DAP, the buyer is usually the importer of record, which typically means arranging a customs broker and registration at the destination country before the shipment arrives.

This matters beyond paperwork: whoever is the importer of record carries the compliance responsibility if a customs classification is challenged later — worth confirming the exact structure in writing for your destination, not assuming from the Incoterm label alone.

Before You Decide

Risk Differences Worth Knowing

DDP Risks Buyers Often Miss
  • “DDP” used loosely — some suppliers apply the term without genuinely covering duty/VAT filing, not just freight
  • No visible duty/VAT line item to check against the total — an all-in number alone isn't proof it's actually all-in
  • No named importer of record, or the question is deflected when you ask directly
  • Destination/local handling charges quietly excluded and billed separately after arrival
  • No evidence offered that duty was actually paid — a customs entry reference or duty receipt, not just a promise
When DAP Can Make More Sense
  • You already have an EORI number and an established customs broker relationship at destination
  • Your business wants to reclaim import VAT directly, which is often only possible if you are the importer of record
  • You have an in-house logistics/compliance team that prefers to control HS-code classification and duty calculation itself
  • You're comparing freight cost independently from duty, and want the two numbers kept clearly separate

Before You Accept Either Term

Questions to Ask Your Supplier or Forwarder

  1. 1.What exactly does “DDP” or “DAP” cover in this specific quote — ask for it in writing, not just the label
  2. 2.Is import duty shown as its own line, separate from freight?
  3. 3.Is import VAT/destination tax included, or will it be billed separately on arrival?
  4. 4.Who is named as the importer of record for this shipment?
  5. 5.Are destination handling, storage or delivery charges included, or extra?
  6. 6.What evidence will I receive that duty/VAT was actually paid — a customs reference, a receipt?

FAQ

Frequently Asked Questions

Does your DDP quote actually include VAT and destination charges?

Send us the supplier quote before you pay. We'll review the numbers, Incoterms and potential hidden costs for €99.

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