DAP vs DDP: Understanding the Differences in Shipping Terms

Learn the key differences between DAP and DDP shipping terms to make informed decisions for your business.

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DAP (Delivered At Place) means the seller is responsible for delivering the goods to a designated place, covering all costs and risks until delivery. DDP (Delivered Duty Paid) goes a step further, where the seller not only delivers to the designated place but also covers import duties and taxes. In short, DDP offers more convenience but is costlier for the seller.

FAQs & Answers

  1. What does DAP stand for in shipping? DAP stands for Delivered At Place, indicating the seller's responsibility to deliver goods to a specified location.
  2. What does DDP mean in shipping? DDP stands for Delivered Duty Paid, meaning the seller covers all costs, including import duties and taxes, until delivery.
  3. Which is better, DAP or DDP? DDP is generally more convenient for buyers as it includes all costs, but may be more expensive for sellers.
  4. Can I choose between DAP and DDP for my shipment? Yes, the choice between DAP and DDP depends on your shipping arrangements and the responsibilities you want to assume.

Watch More

For more insights into shipping terms and logistics, check out our videos on Incoterms and best practices for international shipping.

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